BMM Group, which manages the assets of Zdeněk and Michaela Bakala in the Czech Republic, has announced that shareholders in AWT have reached an agreement for the sale of a majority stake in Advanced World Transport (AWT) group to Polish group PKP CARGO. The finalisation of the transaction, subject to the approval of regulators that cover several European markets, is expected during the first half of 2015.
In line with the concluded agreement, the current AWT majority shareholder, investor Zdeněk Bakala and his family, will sell a shareholding of 80 percent in Advanced World Transport B.V., a company registered in the Netherlands, to PKP CARGO S.A., a Warsaw-based company, for an acquisition price of EUR 103.2 million. The remaining 20 percent of AWT will remain in the ownership of Minezit SE, controlled by entrepreneur René Holeček. PKP CARGO and Minezit SE have entered into a shareholders agreement that regulates in detail mutual relations between the shareholders.
“The PKP CARGO Group is one of the leading players on the European rail freight transport market. AWT will gain a strong strategic partner with both firms sharing not only linked rail networks but also shipping terminals that are advantageously positioned on continental transport routes. PKP CARGO is the company that will enable AWT to not only enjoy significant trade synergies but also progress towards further development in the Central and Eastern Europe region,” said Kamil Čermák, Chair of the AWT Board and BMM Managing Partner, while appraising the transaction.
“This is a historic moment for PKP CARGO and the entire PKP Group, and at the same time one of the largest transactions involving the purchase of a foreign business by a Polish company in recent years. The acquisition of AWT will cause our share in the Czech market to grow by leaps and bounds and will significantly strengthen the strategic position of PKP CARGO in Central Europe. The Czech market is of key importance for us, because of the numerous links with the Silesian region. The Czech Republic is also the gate to Southern Europe, towards the Adriatic Sea. Our presence in this country is a perfect opportunity to extend our train routes,” says Adam Purwin, President of PKP CARGO’s Management Board.
As part of the document there is also a contract, on the basis of which the seller can participate in the income from some new transport arrangements secured in the future by AWT.
The completion of the transaction is subject to the approval of the relevant national antitrust authorities on the affected markets – particularly in the Czech Republic, Slovakia, Poland and Germany – and to the approval of financing institutions.
