9/29/2008

J&T Group strangthens position in Pražská energetika

Acting through Honor Invest, J&T has increased its share in the Pražská Energetika (PRE) power company to approximately 41 %. Another key PRE shareholder – Pražská Energetika Holding (PREH) – also strengthened its position to approximately 58 %. The change came about when the Ministry of Labor and Social Affairs of the Czech Republic exchanged its minority share in PRE (14.2 %) for ČEZ stock.

“This increase in the number of Pražská Energetika shares we hold is part of our goal to continue strengthening our position as a long-term strategic investor in the energy sector,” says Daniel Křetínský, the J&T partner in charge of J&T Group corporate investments.
The aforementioned share exchange is beneficial for all the parties involved in the transaction. PREH and Honor Invest strengthened their participation in a company in which they both already held majority and significant shares respectively.   
On the other hand, the state rid itself of a minority share that had no strategic significance and, in the case of PRE shares, was of minimal liquidity.  As a result of the exchange, the state acquired liquid ČEZ shares, which have a very high growth potential.  In addition, as a majority shareholder in ČEZ, the state can obtain a very appealing premium for each share in the event that ČEZ is privatized in the future.
The transaction also helped stabilize the Pražská Energetika shareholder structure. The total share owned by PREH and J&T now totals 98.98 % of all shares.
PRE is the parent company of one of the most significant energy groups in the Czech Republic. The PRE group delivers electricity to almost 722,000 customers, of which more than 80 % are households. PRE operates a distribution network in Prague and Roztoky and is an important electricity trader. The companies that are members of the PRE Group employ a total of almost 1,400 people. Last year, PRE attained consolidated net profits of 2.46 billion CZK.

With 51% of the shares, Prague City is the majority shareholder in Pražská Energetika Holding. The remaining 49 % of PREH shares are owned by the German-based EnBW.

Martin Maňák
+420 606 648 659