UPDATE 1-CEZ signs 1.5 bln euro Bosnia power plant deal

 (Adds details, quotes, share price) 
    PRAGUE, Dec 4 (Reuters) - Czech power firm CEZ <CEZPsp.PR> 
said on Monday it would invest around 1.5 billion euros ($2 
billion) into the construction of a coal-fired power station in 
Bosnia. 
    The firm said in a statement it had signed an agreement with 
the government of the Serb Republic in Bosnia to build the 600 
to 700 megawatt station in Gacko, as well as developing a mine 
and refurbishing an existing 300 megawatt power station at the 
site. 
    "The future investment of CEZ will reach roughly 1.5 billion 
euros," CEZ said in a statement. 
    CEZ, the largest central European power company with a 
market capitalisation of $23 billion, has been on an investment 
and acquisition trail in the region to help it compete against 
major western utilities. 
    The majority state-owned firm has bought power plants and 
distribution firms in Poland, Romania and Bulgaria and has shown 
interest in building a power station in Kosovo. 
    "The planned investment into building a power plant in 
Bosnia is another step in fulfilling our vision to become a 
leader on the electricity market in central and southeastern 
Europe," CEZ Chief Executive Martin Roman said in a statement. 
    "It will also be the largest-ever foreign investment by a 
Czech company, as well as the largest-ever foreign investment 
into the Serb Republic in Bosnia and Herzegovina," it added. 
    Under the deal signed with Prime Minister Milorad Dodik of 
the Serb Republic in Bosnia, CEZ will take a 51 percent stake in 
a joint venture, called "Nove Elektrarne RS", which will be 
developing the power station. The rest will be owned by the Serb 
Republic's ERS. 
    CEZ shares showed no immediate reaction to the news, trading 
0.3 percent up on the day at 953.50, another in a string of 
record highs. The Prague PX <.PX> index gained 0.2 percent. 
 ((Reporting by Jan Lopatka, editing by David Holmes;  
prague.newsroom@reuters.com; Reuters Messaging: 
jan.lopatka.reuters.com@reuters.net; +420-224 190 474)) 
 
 For main central European company news, double click on [.CEE] 
 E.Europe hot stocks   [HOT-EEU]  Main E.Europe news  [TOP/EAST] 
 Related stories on [HU] [PL] [CZ] [EEU-STX] [EEU-RES]  [EEU-E] 
 For real-time index quotes, double click in brackets: 
 Warsaw WIG20 <.WIG20>  Budapest BUX <.BUX>  Prague PX <.PX> 
 
 ($1=.7507 Euro) 
  Keywords: CEZ BOSNIA/