Category: Czech Republic

  • Dentons Advises Sev.en Energy on Acquisition of Blackhawk Mining

    Dentons has advised Sev.en Energy on the acquisition of US-based metallurgical coal producer Blackhawk Mining. Latham & Watkins reportedly advised Blackhawk on the deal.

    Sev.En Energy is the largest private operator of coal mines and conventional power plants in the Czech Republic.

    According to Dentons, “Blackhawk Mining is one of the largest metallurgical coal producers in the US. With an annual production capacity of seven to eight million tonnes of metallurgical coal among its five underground and open-pit mining complexes in West Virginia and Kentucky, Blackhawk Mining is an important supplier of metallurgical coal both locally and internationally. It also owns three thermal coal mine complexes producing three to four million tonnes per annum. In 2019, Blackhawk Mining had USD 1 billion revenues and USD 120 million EBITDA.”

    Dentons’ team included Prague-based Partner Petr Zakoucky and Associate Barbora Obracajova, New York-based Partners Ilan Katz and Lee Smith and Managing Associate Gregory DiBella, Lexington-based Partner Christopher Van Bever, Evansville-based Partner John Rhine, and Chicago-based Partner Robert Richards.

  • Kinstellar Advises Novavax on Acquisition of Praha Vaccines from Cyrus Poonawalla Group

    Kinstellar has advised US-based Novavax, a late-stage biotechnology company developing next-generation vaccines for serious infectious diseases, on its acquisition of Praha Vaccines a.s. from the Cyrus Poonawalla Group.

    The acquisition includes a vaccine and biologics manufacturing facility and other support buildings in the Czech city of Jevany, together with the company’s employees and all related infrastructure. The value of the transaction was approximately USD 167 million.

    According to Kinstellar, “the newly acquired facility is expected to provide an annual production capacity of over 1 billion doses of antigen starting in 2021 for NVX‑CoV2373 — Novavax’s COVID-19 vaccine candidate. The acquisition of Praha Vaccines is supported by Novavax’s funding arrangement with the Coalition for Epidemic Preparedness Innovations, which enables Novavax to dramatically expand its manufacturing capacity.”

    The Kinstellar team was led by Partner Jan Juroska and included Partner Tomas Cihula, Associates Martina Mazurkova and Martin Holub, and Junior Associates Matej Vecera, Stepanka Havlikova, Alice Radvanovska, Veronika Roznovska, and Sabina Skoumalova.

    Kinstellar did not reply to our inquiry on the matter.

  • Glatzova & Co Successful for Mondi Steti Before Czech Constitutional Court

    Glatzova & Co has successfully represented the interests of paper products manufacturer Mondi Steti before the Constitutional Court of the Czech Republic.

    According to Glatzova & Co., “Mondi had engaged in a dispute with CEZ Distribuce before the Decin District Court in which the Court had imposed a fee of CZK 4.1 million, However, before the decision was final, a special jurisdictional panel found that the competence over the matter at hand fell within the purview of the Energy Regulatory Office and the proceedings before the Decin District Court were stopped, but the court refused to return 20% of the fees Mondi paid – CZK 820,000.”

    The Constitutional Court found that Mondi had followed the rules set by the state authorities and could not be held responsible for the fact that there was a disagreement between those authorities regarding the competence to resolve the dispute. The Court held, therefore, that failing to refund the full court fee violated Mondi’s fundamental right to a fair trial and the right to own property.”

    Glatzova & Co’s team included Partner Erik Kolan and Lawyer Filip Murar.

  • Czech Republic: First Steps on the Journey to EHEALTH

    Similar to other areas of human endeavour, healthcare is bound to undergo the inevitable process of digital transformation. In the last two years the Czech Republic has taken its first steps towards digitizing its healthcare system by introducing mandatory electronic prescriptions and electronic sick notes and is about to introduce an electronic medications record. Unfortunately, there has been little progress on other fronts. Moreover, the Ministry of Health has yet to complete its draft law setting common standards and rules for eHealth, and it is unlikely to meet its current goal of having the law go into effect in 2021.

    e-Prescriptions

    Although legally anchored much earlier, electronic “e-Prescriptions” (in Czech “eRecept”), were not widely employed until January 1, 2018, when they became mandatory. Despite initial objections and resistance, mainly by independent general practitioners, today several million e-Prescriptions are issued every month.

    Each e-Prescription carries information about drugs prescribed to the patient and ensures an electronic exchange of this information between the doctor, patient, pharmacy, and healthcare insurer. When a doctor issues an e-Prescription, it is stored in the central repository of electronic prescriptions, and accessible to the relevant pharmacy dispensing the drug. The patient is free to choose how he/she will receive the e-Prescription identifier. Paper note identifiers are still the most common, but electronic means such as SMSs, emails, and smartphone apps are becoming increasingly popular.

    The central repository allows for the creation of patient-specific medication records, i.e., a registry of all e-Prescriptions issued and drugs dispensed to the patient. Effective from June 2020, any doctor treating a patient will be able to view the patient’s medication record, as will any pharmacist dispensing a drug to the patient. This will prevent duplicate prescriptions and unwanted drug interactions. Patient consent to authorized access to their medication record is presumed but can be revoked (i.e., an opt-out system).

    e-Sick Notes

    On January 1, 2020, an electronic system went into use for processing decisions on temporary incapacity to work. The system for these “e-Sick Notes” (in Czech “eNeschopenka”) was inspired by the e-Prescriptions system. It ensures an exchange of information among doctors, employers and the relevant social security office. Doctors no longer issue sick notes in hard copy. Employees inform their employer that they are sick via phone or email without the need for paper forms. Employers verify the e-Sick Note via the Social Security Administration’s web portal. There, they can also opt to receive sickness notifications for their employees via an electronic databox and notification alerts to their email.

    Once the sick employee has surpassed 14 days of sickness he/she is entitled to sickness insurance benefits. Under the new system employees no longer have to inform their social security office; it is done automatically. The benefit is deposited directly in the employee’s bank account, which is provided by the employer.

    e-Health Act

    Carrying out systematic digitization of the national healthcare system would not be possible without an appropriate legal framework. The Ministry of Health is currently drafting a law that will set out a comprehensive systematic solution. The Act on Electronic Healthcare (the “e-Health Act”) is expected to set common technical standards for digitization and sharing of health records among healthcare providers and patients. Considering the sensitive nature of this data and the potential related risks, it is envisaged that health records will not be centrally collected; as a general rule, they should be indexed instead. Only an “emergency data record” containing basic information about the patient relevant for emergency services (e.g., allergies), will be kept in a central register. The e-Health Act should also establish registers of patients, healthcare providers, and healthcare workers and set out the rules for access to this information.

    While the e-Health Act was expected to go into effect this year, there have been significant delays. Currently, the Ministry of Health intends to have the draft law prepared by mid-2020 and is hoping to put the law in effect in 2021. At this point, these goals seem unrealistic, considering the paucity of information available about the draft law and the fact that it will likely face significant debate with all relevant stakeholders (state authorities, healthcare providers, payers, patients, etc.), not just on the technical standards and practical issues of implementation, but also on personal data protection aspects of healthcare digitization. 

    By Monika Maskova, Partner, and Michal Rehorek, Associate, PRK Partners Prague

    This Article was originally published in Issue 7.3 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.

  • Dentons and Allen & Overy Advise on CPI Property Group’s Green Bond Issuance and Tender Offer

    Dentons has advised CPI Property Group on a successful tender offer of bonds and the issue of EUR 750 million 2.75% Notes due 2026 under CPI’s EUR 8 billion Medium Term Note Program.

    The notes were issued as green bonds under CPI’s recently updated EMTN Program and part of the proceeds of the issuance of the notes was used towards the redemption of CPI’s tendered debt. Credit Suisse Securities (Europe) Limited, Deutsche Bank AG, HSBC Bank plc, Nomura International plc and Unicredit Bank AG acted as joint lead managers on the issuance of the notes, and were advised by Allen & Overy.

    Dentons’ London-based team was led by Partner Nick Hayday and included Associate Moeen Qayum, and Trainee Jessica Matheret. The firm’s Luxembourg-based team consisted of Partner Stephane Hadet and Counsel Olivier Lesage.

    Allen & Overy’s team was led by Partner Peter Crossan and included Senior Associate James Avison and Associate Lachlan Hopwood.

  • Czech Republic: Changes in Real Estate Law from 1 July 2020

    An amendment to the Civil Code will enter into force on 1 July 2020, which (i) cancels (save for some exceptions) the pre-emption right of co-owners of real estate, (ii) lifts the ban on contractual penalties against tenants of residential premises, and (iii) significantly changes the legal regulation of unit owners associations.

    Cancellation of pre-emption right

    If a co-owner of a property currently wants to transfer his co-ownership share, it is obliged to offer its share for purchase to the other co-owners. This creates considerable difficulties, especially in the sale of garage parking spaces, which from a legal point of view are a co-ownership share in the garage as a non-residential unit. The same difficulties occur in the case of the sale of a co-ownership share in a land plot.

    In practice, a seller concludes a co-ownership share purchase agreement with the buyer and then submits the agreement to the other co-owners of the real estate (e.g. a non-residential unit), which may often be tens to hundreds, with a call for exercise of the pre-emption right. If a co-owner (pre-buyer) expresses an interest in purchasing a co-ownership share (accepts the offer) and pays the purchase price within three months, the previously negotiated and concluded purchase agreement with the original buyer is cancelled.

    With effect from 1 July 2020, this pre-emption right is cancelled (with a few exceptions mainly concerning real estate in the co-ownership of legal successors) and co-ownership shares in real estate will in principle be freely transferable.

    However, it should be borne in mind that if the seller’s obligation to offer a co-ownership share to a pre-buyer arises (i.e. if a purchase contract was concluded) before the effective date of this amendment (before 1 July 2020), the pre-emption right will not be cancelled and expires after three years.

    Possibility to impose a contractual penalty on tenants of residential premises

    Under the current legislation, a tenant of a residential unit or a house being leased for residential purposes, may not be imposed with a contractual penalty in the event of a breach of the tenant’s obligations under the lease agreement. The current amendment to the Civil Code removes this prohibition on imposing a contractual penalty on tenants. However, the contractual penalty together with the security (deposit) may not in total exceed three times the monthly rent.

    Changes in the regulation of unit owners associations
    The amendment also contains a number of changes in the regulation of unit owners associations (in Czech: společenství vlastníků jednotek), the most important of which are described below.

    The sole owner of all units will now be able to establish a unit owners association. Developers will thus be able to establish a unit owners association before the sale of individual residential and non-residential units to their customers.

    The requirements for changing the declaration of the house owner on the division into units will be simplified; unit owners association assembly approval will no longer be necessary. An overruled owner of a unit will have the right to challenge the decision to change the declaration of the house owner at the court within three months from the moment when it could learn about the decision.

    The involuntary sale of a unit of an owner who seriously violates its obligations will also be easier after the current amendment to the Civil Code. In future, the court will be able to order the sale of the unit at the request of the person responsible for the administration of the house (i.e. usually the administrator elected by the unit owners association assembly), even if the owner was not previously required to fulfil its obligation by an enforceable court decision. Before the sale of the unit, a prior written warning from the house administrator will be required, who will have to comply with the legal requirements.

    By Viktor Pakosta, Attorney at Law, Schoenherr

  • Weinhold Legal and Wolf Theiss Advise on Sale of Klikpojisteni.cz

    Weinhold Legal has advised the shareholders of Klikpojisteni.cz, a.s., including the private equity arm of Benson Oak Capital, on the sale of their 100% stake in Klikpojisteni.cz, a.s. to a company majority-owned by TA Associates and minority-owned by MCI EuroVentures. The buyer was advised by Wolf Theiss and Travers Smith. Financial details were not disclosed.

    Weinhold Legal describes Klikpojisteni as “an online insurance broker in Czechia and Slovakia, [whose] clients are able to compare the prices of a variety of insurance transparently.” According to the firm, “Benson Oak (founded in 1991) is the oldest investment banking boutique in the Czech and Slovak markets, and Benson Oak Capital has been investing in venture capital and private equity since 2001.”

    Weinhold Legal’s team was led by Partner Ondrej Havranek and included Attorney Vladimir Petracek and Junior Associate Jan Cermak.

    Wolf Theiss’s team in Prague included Counsel Tereza Naucova and Senior Associates Katerina Kulhankova and Filip Michalec. Its team in Bratislava included Partner Katarina Bielikova and Associate Ivana Hovancova, and its team in Budapest included Partner Janos Toth and Associate Peter Ihasz.

    Travers Smith’s team included Partners Paul Dolman and Donald Lowe and Associates Matt Powrie, Hattie Langworth, and Michael Leadbeater.

  • Glatzova & Co and Kinstellar Advise on KKCG’s Sale of Conectart to Genesis Capital

    Glatzova & Co has advised the KKCG investment group on the sale of Conectart, a call center operator in the Czech Republic, to the Genesis Capital Group. The Prague office of Kinstellar advised the buyers on the deal.

    Genesis Capital creates and develops finance programs for software and IT hardware markets.

    Glatzova & Co’s team was led by Partner Jiri Sixta and included Lawyer Nela Cekalova.

    Kinstellar’s team was led by Partner Jan Juroska and included Partner Tomas Cihula, Counsel Zdenek Kucera, Senior Associate Michal Kniz, and Junior Associates Denisa Simanska and Stepanka Havlikova.

  • Kinstellar Helps CSOB Launch Blockchain Trade Finance Platform in the Czech Republic

    Kinstellar has helped CSOB to launch the we.trade finance platform in the Czech Republic.

    According to Kinstellar, “built on the IBM Blockchain Platform and powered by Hyperledger Fabric, the we.trade blockchain platform offers customers access to a simple user-interface, leveraging innovative smart contracts and opens up potential new trading opportunities. It uses blockchain technology to seamlessly connect buyers, sellers, banks, and shippers involved in a trade, and to digitalize the whole process from order creation to payment execution. The service thus requires less paperwork and is completely traceable, which makes trading on the platform transparent and immune to fraud.”

    The we.trade platform is now available in 14 countries across Europe.

    Kinstellar’s team included Counsel Martina Brezinova and Junior Associate Jakub Stastny.

  • GT Legal and TDPA Advise on Sale of Stake in Fragile Media to KnowLimits Group

    GT Legal has represented Fragile Media s.r.e. founder Daniel Kafka and the Etnetera Group at the sale of their combined 50% stake in Fragile Media to the Czech KnowLimits media and communications group. The Trojan, Dolecek & Partners team advised the buyers on the deal.

    The GT Legal team was led by Partner Lukas Zahradka.

    TDPA Partner Jiri Hron advised the KnowLimits Group on the deal.