Category: Czech Republic

  • KSB Helps PepsiCo CZ Sell Bottled Water Business to Coca-Cola HBC Cesko a Slovensko

    KSB Helps PepsiCo CZ Sell Bottled Water Business to Coca-Cola HBC Cesko a Slovensko

    Kocian Solc Balastik has advised PepsiCo CZ on the sale of its Toma bottled water business to Coca-Cola HBC Cesko a Slovensko.

    The sale contract was signed on August 23, 2019, and financial details were not disclosed. The transaction includes the Tomy plant in Teplice nad Metuji, in the Czech Republic, as well as  51 employees and existing contracts with clients and suppliers. Coca-Cola acquired the right to use the Toma brand for water and ice teas for five years.

    The KSB team was led by Managing Partner Dagmar Dubecka, supported by Associate Jana Guricova.

    KSB did not reply to our request for more information.

  • Schoenherr Advises Torrot on Electric Scooters Delivery to Skoda Auto DigiLab

    Schoenherr Advises Torrot on Electric Scooters Delivery to Skoda Auto DigiLab

    Schoenherr Prague has advised Spanish manufacturer Torrot Electric Europa, S.A. on the “delivery of technology solutions” for scooter sharing to Skoda Auto DigiLab s.r.o. Rowan Legal advised Skoda Auto DigiLab on the deal.

    According to Schoenherr, the delivery includes electric scooters, advanced IT technologies, and IT services, which Skoda Auto DigiLab will use for its new e-scooter sharing service BeRider in Prague.

    Founded in 1942, Torrot works in the field of electric scooters and bicycles.

    Skoda Auto DigiLab is based in Prague. The company develops mobility solutions.

    The Schoenherr team was led by Partner Vladimir Cizek, supported by Attorneys-at-Law Viktor Pakosta, Eva Bajakova, and Stanislav Bednar.

    Editor’s Note: After this article was published Rowan Legal informed CEE Legal Matters that its team was led by Managing Associate Ondrej Krizek, supported by Senior Associate Bohuslav Lichnovsky and Junior Lawyer Jakub Jirovsky. 

  • Allen & Overy Advises on Domestic Bond Issuance by Sazka Group

    Allen & Overy Advises on Domestic Bond Issuance by Sazka Group

    Allen & Overy Prague has advised joint lead managers J&T Banka, Ceska Sporitelna, Komercni Banka, and UniCredit Bank Czech Republic and Slovakia, and J&T IB and Capital Markets as arrangers, on the Sazka Group’s CZK 6 billion bond issuance.

    Sazka Group is a pan-European lottery and sports betting operator that operates in Austria, Cyprus, the Czech Republic, Greece, and Italy.

    According to Allen & Overy, “the transaction is particularly novel and unique in that the prospectus of these bonds is the first prospectus approved by the Czech National Bank after the new Prospectus Regulation took full effect in July this year. It is also the first transaction on the Czech market with bonds issued as unsecured obligations on the issue date, whilst its terms and conditions contain issuer’s covenant to provide, subject to certain conditions, security for the bonds and, at the same time, appoint a security agent. For that purposes, the terms and conditions of the bonds set out a full spectrum of future rights and obligations of the security agent as creditor and secured creditor vis-à-vis the issuer, security providers and bondholders.”

    The Allen & Overy team was led by Counsel Petr Vybiral, supported by Associate Tomas Kirner, among others.

  • JSK Advises Shareholders of Cloud4Com on Sale of Majority Stake to Autocont

    JSK Advises Shareholders of Cloud4Com on Sale of Majority Stake to Autocont

    JSK has advised the shareholders of Cloud4Com on the sale of a 70% stake in the company to Autocont a.s. Glatzova & Co. reportedly advised the sellers.

    Cloud4com, a.s. is a provider of data center infrastructure, known as Infrastructure as a Service (IaaS) for small and medium-sized enterprises in the Czech Republic and Slovakia. Autocont a.s. is a Czech company belonging to the KKCG Group that has been introducing and operating useful information technologies on the Czech and Slovak markets for over 25 years. It focuses on providing IT solutions and services for corporate clients and government. The sale of the majority stake follows a 2015 transaction in which KKCG acquired a minority stake in Cloud4Com.

    The JSK team was led by Partner Tomas Dolezil, working with Senior Associate Helena Hailichova and Junior Lawyer Tomas Benes. 

  • Havel & Partners and CEE Attorneys Advise on Sale of Majority Stake in VSHosting Group

    Havel & Partners and CEE Attorneys Advise on Sale of Majority Stake in VSHosting Group

    Havel & Partners has advised German-based investors Thomas Noglik, Thomas Strohe, and Jochen Berger, acting through their BrainWeb Investment GmbH, Pecunalta GmbH, and Quines Capital GmbH companies, on their acquisition of a 75% stake in the VSHosting Group. CEE Attorneys advised the unidentified sellers.

    CEE Attorneys describes the VSHosting Group as “one of the leading providers of IT services, web hosting, and databases in the Czech Republic.” According to the firm, “rules of joint management of the group companies were negotiated and set up as part of the transaction.”

    The Havel & Partners team consisted of Partner Marek Losan, Counsel Natalia Traurigova, and Associate Vladimir Ivanov. 

    The CEE Attorneys team was led by Partner Lukas Petr, supported by Associate Barbora Janebova.

  • Wolf Theiss and Clifford Chance Advise on Wilsonart Engineered Surfaces’ Acquisition of Technistone

    Wolf Theiss and Clifford Chance Advise on Wilsonart Engineered Surfaces’ Acquisition of Technistone

    Wolf Theiss has advised Wilsonart Engineered Surfaces on its acquisition of Technistone, a global manufacturer of quartz. Clifford Chance advised Technistone on the transaction, which remains subject to regulatory approvals and is expected to close in September of 2019.

    Wilsonart, a global engineered surfaces company with headquarters in Austin, Texas, manufactures and distributes high-pressure laminate, quartz, solid surface, and other engineered surface options for use in the office, education, healthcare, residential, hospitality, and retail markets. It operates under the Wilsonart, Resopal, Polyrey, Arborite, Laminart, Bushboard, Shore, Mermaid, Ralph Wilson, KML, and Durcon brands. 

    Technistone is a manufacturer of engineered quartz stone that has specialized in the industry for more than 20 years. The company is located in the Czech Republic and successfully exports quartz slabs to more than 75 countries around the world.

    The Wolf Theiss team was led by Sofia-based Partner Richard Clegg and Prague-based Partners Robert Pelikan and Jitka Logesova and included Counsel Jochen Anweiler, Senior Associates Katerina Kulhankova, Sabina Krajickova, and Irina Dekova, and Associates Barbora Malimankova and Hanna Gerstner.

    The Clifford Chance team included Partner Alex Cook, Counsel Michal Jasek, Associates Ludvik Ruzicka and Veronika Kinclova, and Junior Lawyers Tomas Prochazka and Martin Urban.

  • Weinhold Legal Advises Transdev on Acquisition of 3 CCSAD Bus Companies

    Weinhold Legal Advises Transdev on Acquisition of 3 CCSAD Bus Companies

    Weinhold Legal has advised mobility company Transdev on the acquisition of the 3CSAD group from CIDEM Hranice. CIDEM Hranice was advised by Hladky Legal.

    Transdev operates in 20 markets. The company has over 1,350 employees and 600 coaches.

    The Weinhold Legal team was led by Partner Ondrej Havranek and included Attorneys-at-law Jan Turek and Vaclav Smetana and Junior Associate Simon Zlotir.

  • KSB Advises Solitea Group on Acquisition of Dotykacka and Smart Software

    KSB Advises Solitea Group on Acquisition of Dotykacka and Smart Software

    Kocian Solc Balastik has advised the Solitea Group on its acquisition of Dotykacka and Smart Software.

    As a result of these acquisitions, KSB reports, “Solitea has significantly expanded its market share in the Education, Employment & Training market, tripling the number of its accounting systems and becoming the market leader in this market.”

    The KSB team was led by Partner Drahomir Tomasuk and included Attorney Jan Beres.

  • Ongoing Struggle for Access to Medical Cannabis

    The Czech Republic was one of the first countries in Europe to allow the use of cannabis for medical purposes. This was achieved in 2013 by means of an amendment to the Act on Pharmaceuticals, which was subsequently implemented by the “Cannabis Regulation.” Despite this, access to medical cannabis still remains difficult for many patients.

    Prescribing Medical Cannabis

    Qualitative requirements: The term “medical cannabis” refers to the dried female flowers of the plant Cannabis sativa L. or Cannabis indica L., with levels of THC (tetrahydrocannabinol) and CBD (cannabidiol) within the ranges set out in the Cannabis Regulation. The ranges are wide – from 0.3 percent to 21.0 percent for THC and from 0.1 percent to 19.0 percent for CBD. 

    Indications: Medical cannabis is used as an auxiliary treatment to alleviate symptoms accompanying serious illnesses. Medical cannabis can only be prescribed by doctors with the appropriate specialization and only for the health indications listed in the Cannabis Regulation. For example, specialists in neurology and geriatrics are allowed to prescribe medical cannabis for a wide range of health conditions, including spasticity and pain associated with multiple sclerosis. In order to make information on prescribing doctors and their specializations accessible to patients, the State Agency for Medical Cannabis publishes a list of doctors on its website.

    Quantity Limit: The total amount of medical cannabis that can be prescribed to a patient was originally limited to 30 grams per month. This was increased to 180 grams per month. Medical cannabis can only be prescribed by means of an electronic prescription system, known as the “register of restricted medical products,” which can be accessed by doctors and pharmacists. Pharmacists dispensing medical cannabis must check whether or not the patient has already reached the monthly limit.  

    Possession

    Although growing and possessing cannabis is generally forbidden, possessing medical cannabis under prescription is an exception. The police have the right to demand the patient’s ID card and to check the register to verify the amount of medical cannabis already dispensed to the patient. Possessing more than the prescribed limit could be considered a minor offence or a more serious crime, depending on the amount.

    Barriers to Access

    For the first two years after passage of the medical cannabis law, patients were blocked from obtaining cannabis because there was no electronic register of restricted medical products; it only became operational in 2015. Then, due to difficulties in the public tendering process for suppliers of cannabis to the Czech market, there was a shortfall of cannabis in pharmacies. Currently, price remains the major barrier to patients wanting access to medical cannabis.  

    Generally, public health insurance does not cover prescriptions of medical cannabis. The law provides for an exceptional reimbursement in special situations, where the medical product in question is the only suitable treatment for the patient’s condition. Considering these stringent conditions, it comes as no surprise that insurance companies are strongly opposed to reimbursing the cost of medical cannabis. In one noteworthy case, after considerable media coverage and repeated litigation, including a complaint to the Constitutional Court, the General Health Insurance Company (the largest, state-owned insurer) agreed to pay the cost of the medical cannabis prescribed to the patient, who suffered from multiple sclerosis.

    Proposed Changes to Reimbursement

    A bill introducing insurance coverage of medical cannabis is currently under debate in Parliament. According to the bill, insurance would cover 90 percent of the price of up to 30 grams of medical cannabis per month. If approved by the insurance company’s doctor, this could be increased to 180 grams per month (i.e., the total quantity limit). This approval requirement may represent a barrier to access for patients with severe conditions who need larger amounts of cannabis.

    The bill also introduces a new duty on doctors prescribing cannabis, requiring them to inform the regulator about the method and results of treatment for each patient receiving a prescription. This duty could be burdensome for doctors and may potentially discourage them from prescribing it.

    Conclusion

    Even though prescription of medical cannabis has been permitted for the past six years, the number of patients using it remains low. Currently, this can primarily be attributed to the high price of medical cannabis and lack of insurance coverage, which particularly affects patients with severe conditions needing larger amounts of cannabis. Even if passed, the new bill introducing insurance reimbursement of medical cannabis will not remove the barrier for such patients.

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

    This Article was originally published in Issue 6.6 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.

  • Dentons and White & Case Advise on Sale of DRN Building in Prague to KGAL

    Dentons and White & Case Advise on Sale of DRN Building in Prague to KGAL

    Dentons has advised Czech real estate developer Sebre on the sale of the DRN building in Prague to KGAL Investment Management, a German investment and asset management company. White & Case advised KGAL on the deal.

    The DRN multi-purpose building was completed in 2017 and is located in the Prague city center.

    The Dentons team included Partner Jiri Strzinek and Associates Filip Svoboda and Filip Spina.

    The White & Case team was led by Counsel Ladislav Chundela and Partner Jan Linda and included Partner Jan Parik and Associates Barbora Nedvedova, Petra Zunova, and Kamila Dankova.