Czech govt approves sale of part of CEZ stake

KOLODEJE, Czech Republic, Sept 25 (Reuters) - The Czech government approved a plan on Monday to sell part of the state's stake in power utility CEZ <CEZPsp.PR> next year to plug a hole in the state budget, Finance Minister Vlastimil Tlusty said.

Tlusty said the government would sell shares to a volume of 31 billion Czech crowns ($1.40 billion), which would be around 6-7 percent of the firm given its current share price.

The state holds 68 percent of CEZ and Tlusty has said any sale of the shares would be gradual and through the market in order to avoid flooding it and causing a price slump.

The state budget deficit proposal has a planned deficit at 119 billion crowns for next year.

However, the government lacks parliamentary majority and will likely lose a confidence vote due by Oct. 4. The opposition Social Democrats have said they are against the sale of the CEZ stake. ((Reporting by Jan Lopatka, editing by Alan Crosby; prague.newsroom@reuters.com; Reuters Messaging: jan.lopatka.reuters.com@reuters.net; +420-224 190 474))

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Keywords: UTILITIES CZECH CEZ