Czech energy firm Energetický a průmyslový holding (EPH) plans to sell minority stake in newly created its energy infrastructure unit EP Infrastructure (EPIF) through an initial public offering (IPO) on the Prague and London stock market.
EPIF operates through gas transmission, gas and power distribution, heat infra and gas storage segments in the Slovak Republic and the Czech Republic.
EPIF CEO Tomáš David said: "We operate a portfolio of modern, well-invested and long-lived infrastructure assets which are of vital importance to the European energy market."
The IPO, which is subject to certain market conditions, is expected to be completed in second quarter this year.
EPH is planning to sell at least a 15% stake in EPIF, which owns a 49% stake in Slovak gas pipeline operator Eustream, through IPO, reported Reuters.
EPIF supervisory board chairman Daniel Kretínský said: "In EPIF we have created a leader in energy infrastructure in Central Europe, bringing together some of the strongest EPH assets in one integrated Group.
"With its key role in gas transport for European markets and its market-leading positions in the energy sectors of the Slovak Republic and Czech Republic, EPIF’s aim is to generate strong and stable revenues in the coming years.
"As a founder of EPIF, my intention is to ensure attractive and sustainable dividend payments for all our shareholders, based on our high quality assets and the growing economies in the region."
Proceeds from the offering will be used by EPH to buy back its own shares held by Biques Limited, a passive financial investor in EPH.
EPH will continue to remain a long-term investor in EPIF and intends to retain majority ownership of its infrastructure business.
Image: EP Infrastructure has 49% stake in Slovak gas pipeline operator Eustream. Photo: courtesy of EP Infrastructure/Eustream.