J&T and PPF Form an Energy and Industrial Holding Company
02/16/2009
The J&T and PPF groups today announce that they signed the agreement establishing a joint venture company in the energy and industry sectors. The energy and industrial holding company will be formed from a PPF Group investment of CZK 6 billion, combined with the sale of energy and industrial equity stakes from the J&T group. Following this, PPF will hold a 40% stake in the new holding company; J&T will hold 40 % and 20 % will be held by Mr Daniel Křetínský, who will retain management responsibility for the newly-established holding company.
The new company will control over 20 businesses currently active in power and heat generation, power trading, power boiler and turbine manufacturing, energy plant installation and other related fields. The holding company also has interests in passenger bus manufacturing as well as in the food industry.
“We believe the joint holding company formed with J&T and Daniel Křetínský has considerable growth potential. Our investment in this new venture is representative of the way in which PPF seeks to capitalise on new, emerging opportunities brought by the current market. In maximising this and all our portfolio investments, PPF will not to limit its investments to the home markets of the Czech Republic and Slovakia. We will continue to look selectively into investment opportunities in other countries of Central and Eastern Europe, Russia and the CIS countries,” said Jiří Šmejc, a shareholder of the PPF Group, commenting on the transaction.
“We welcome PPF’s investment as a major milestone for the newly-formed holding company. This move will enable us to accelerate our acquisition activities in the energy and industrial sectors, which have become very attractive due to the current economic situation,” said Daniel Křetínský, J&T's Partner responsible for corporate investments.
The process of establishing the holding should be formally completed within the next three months.
The new company will control over 20 businesses currently active in power and heat generation, power trading, power boiler and turbine manufacturing, energy plant installation and other related fields. The holding company also has interests in passenger bus manufacturing as well as in the food industry.
“We believe the joint holding company formed with J&T and Daniel Křetínský has considerable growth potential. Our investment in this new venture is representative of the way in which PPF seeks to capitalise on new, emerging opportunities brought by the current market. In maximising this and all our portfolio investments, PPF will not to limit its investments to the home markets of the Czech Republic and Slovakia. We will continue to look selectively into investment opportunities in other countries of Central and Eastern Europe, Russia and the CIS countries,” said Jiří Šmejc, a shareholder of the PPF Group, commenting on the transaction.
“We welcome PPF’s investment as a major milestone for the newly-formed holding company. This move will enable us to accelerate our acquisition activities in the energy and industrial sectors, which have become very attractive due to the current economic situation,” said Daniel Křetínský, J&T's Partner responsible for corporate investments.
The process of establishing the holding should be formally completed within the next three months.