Finance

(CIA, Oct 26) Dutch financial group ING Groep has announced that it will sell its entire insurance division and become a bank focusing primarily on the European market by 2013. After the restructuring the group's balance sum should be 30% lower than prior to 2008's government bailout.

(CIA, Nov 18) CSOB will list some of its shares on the Prague bourse. The European Commission has approved Belgian KBC's strategic plan which includes listing between 30 and 40 percent of CSOB shares on the Prague Stock Exchange. The shares will be listed in 2010. The issue could be accompanied by new shares but KBC will remain the majority shareholder of CSOB.

(CIA, Dec 10) European investment company AnaCap Financial Partners LLP, which specializes in private equity investments into financial services, is buying the Czech branch of Banco Popolare. After completing the acquisition AnaCap will try to expand its product mix, increase management skills, and optimize the management of the bank's assets and liabilities.

Energy

(CIA, Oct 15) Investment groups J&T and PPF have completed their investment of property and capital into Energeticky a Prumyslovy Holding (EPH). Through its private equity structure PPF Partners the PPF group has secured a 40% stake in the holding; J&T indirectly owns another 40%. The remaining 20% is held by Daniel Kretinsky, who is no longer a partner of the J&T group. The holding will be managed by a team led by Mr Kretinsky, who will be the chairman of the board of directors.

(CIA, Nov 9) CEZ has confirmed that it has signed with Dalkia Ceska Republika a contract for the purchase of an 85% stake in Dalkia Usti Nad Labem. The price for the Ustecko-based heating plant and rights to the remaining 15% stake equals CZK 6.3 bln. CEZ will also acquire a 15% stake in Dalkia CR for CZK 3.6 bln.

(CIA, Dec 15) Within four months of entering the natural gas market CEZ Prodej has managed to secure more than ninety corporate customers. In 2010 year it will thus supply 1.6 TWh of gas to more than 200 customers. The CEZ group's share of the gas market for large customers will total 4%. Most of the supplies will begin in early 2010. However, some of the customers have started buying gas from the CEZ group in these months.

Development

(CIA, Oct 1) Developer Skanska Reality plans to build a large residential project with social infrastructure and a supermarket in Prague-Kbely. The complex will include 15 residential buildings with 561 residential units. The investor plans to commence construction in 2011 and completion of the entire facility is scheduled for 2020. Construction will take place in five stages.

(CIA, Nov 2) CSAD Praha Holding has introduced its new Rohan Business Centrum administrative project in Prague's Karlin. The company would like to commence construction of the project, which should cost roughly CZK 350 mln, in the fall of 2010 but this will depend on the volume of space that is pre-leased. It plans to complete the project in 2012.

(CIA, Dec 22) Developer ECM Real Estate Investments has sold its project City Tower, the largest commercial structure in the Czech Republic, to an unnamed private investor. The contractual parties agreed on property value of EUR 130 mln with sales yield (capitalisation rate) of 7.0%. ECM has sold the 100% stake in the firm City Tower, which owns the property of the same name. The sales price consists of EUR 36.2 mln in cash and bonds in issued by ECM in October 2007, totalling EUR 15.8 mln.

New Investments

(CIA, Oct 9) Saint-Gobain Vertex plans to build a new production facility housing the production and processing of glass fibre textiles and woven textiles intended primarily for the construction industry in Hodonice near Znojmo under the name Projekt F.

(CIA, Nov 20) Litomerice-based company Hennlich Industrietechnik, which supplies components and entire systems for the production of steel, energy, investment aggregates, and hydraulics, will invest more than CZK 100 mln into a new research and development centre. The money will be invested into environmental protection products and renewable energy sources, which the company has been involved with in the long run.

(CIA, Dec 2) The Plzen Region Office has approved the plans of Schmelzer, which produces tubular and large-scale weldments from black sheet. The company wants to build a new 2.5-hectare facility for the production of larger steel structures and weldments from steel sheets and bar iron near the Chodova Plana municipality in the Tachov district. Construction should commence in April 2010 and be completed in December 2010.

Acquisitions and Mergers

(CIA, Oct 5) Investment company TA Associates has purchased a minority stake in domestic anti-virus program supplier AVG Technologies for USD 200 mln (ca. CZK 3.5 bln). The Enterprise Investors fund remains the largest shareholder with 34%.

(CIA, Nov 5) The Antimonopoly Office has permitted the merger of Penta Investments and AeskuLab Holding. Penta will thus be able to expand its activities in the healthcare sector to include services involving diagnostic lab treatments. The shares representing a 100% stake in AeskuLab Holding's basic capital will be purchased by Penta through Slovak Alpha Medical.

(CIA, Dec 16) Czech Airlines will sell its four Duty Free shops in the Czech Republic to Aelia Czech Republic, which is a member of the Lagardere Services group. It will pay CZK 764 mln for the stores. The result of the tender as well as the contractual conditions of the transaction have also been approved by the general shareholders meeting of Czech Airlines.

Retail

(CIA, Nov 26) Inter Ikea Centre Group, which builds and operates Avion Shopping Park retail centers, plans to invest EUR 300 mln (roughly CZK 7.8 bln) in the Czech Republic and Slovakia within three years. The company has set aside EUR 200 mln (CZK 5.2 bln) for projects in the Czech Republic. According to the general manager of Inter Ikea Centre Ceska Republika and Inter Ikea Centre Slovensko, Pavel Hradec, the planned investments should include the expansion of existing centers as well as the construction of new ones.

(CIA, Dec 2) On 2 December Luxembourg-based private equity group CVC Capital Partners became the new owner of Pivovary Staropramen. The brewery is thus part of new brewery group StarBev, which will be headquartered in Prague. Pivovary Staropramen GM Zbynek Kovar stated earlier that the change in ownership will not affect consumers, business partners, or employees. Pivovary Staropramen continues to hold a license for Belgian beers Stella Artois, Hoegaarden, and Leffe and will continue to distribute them as part of its portfolio.

(CIA, Dec 15) In 2010 Tesco Stores Czech Republic will start providing the Tesco Mobile service in the Czech Republic; it will sell mobile operator services through the service. The Tesco Mobile service has already been launched in Slovakia, on 2 December. The partner of the project in Slovakia is mobile operator Telefonica O2 Slovakia.

(CIA, Dec 21) Whitbread, which owns the Costa Coffee coffee shop chain, is getting ready to make a takeover offer for Polish coffee shop chain Coffeeheaven to its shareholders. Coffeeheaven International president Richard Worthington stated that shareholders have not yet seen this offer and they will decide what will come next.