16.02.2009

J&T and PPF Agreed to Form an Energy and Industrial Holding Company

Prague/Amsterdam – The J&T and PPF groups hereby announce that they have signed an agreement establishing a joint venture company in the energy and industry sectors. The energy and industrial holding company will be formed through a combination of an investment and the sale of energy and industrial equity stakes from the J&T group. PPF will hold a 40% stake in the holding in return for its investment of CZK 6 billion. Another 40 % will be held by J&T and 20 % by Daniel Křetínský, who will be in charge of management in the newly-established holding company.

The newly-formed energy and industrial holding company will control over 20 businesses active in power and heat generation, power trading, power boiler and turbine manufacturing, energy plant installation and other related fields. The holding will be also including a bus manufacturer and companies in the food industry.

“The holding company formed together with J&T and Daniel Křetínský has considerable growth potential. Our investment in this venture is one of the ways PPF intends to participate in the opportunities offered by the current market situation. At the same time, we are going to use ever more actively our proven know-how in increasing the asset value. While doing so, our investments will not only be limited to the home markets of the Czech Republic and Slovakia, we are also going to look selectively into investment opportunities in other countries of Central and Eastern Europe, Russia and the CIS countries,” Jiří Šmejc, a shareholder of the PPF Group, commented on the transaction.

“We welcome the capital entry of PPF as of the strongest home investor; it is a major strengthening for the newly-formed holding. In the energy and industrial sectors, this move will enable us to accelerate our acquisition activities, 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 completed formally within the next three months.

 

Martin Maňák
J&T Group Director of Communications    
for the Energy Sector 
mobil: +420 606648659  
mail: manak@jtfg.com

Alexej Bechtin
PPF Group Spokesman
Phone.: 224 174 396
E-mail: bechtin@ppf.cz                  

Author: Martin Maňák