Category: Czech Republic

  • PRK Partners Successful in Defending RPG Industries Against Claim Brought by ARC Equity Services

    PRK Partners Successful in Defending RPG Industries Against Claim Brought by ARC Equity Services

    PRK Partners has successfully represented RPG Industries in a first instance court in Ostrava against a claim for damages brought by ARC Equity Services against RPG and Residomo relating to an apartment and its owner.

    The PRK Partners team consisted of Partners Robert Nemec and Martin Aschenbrenner and Senior Associates Michal Sylla and Lenka Konvalinova.

    According to the firm, the judgment is not final.

    Editor’s Note: After this article was published CEE Legal Matters learned that Dentons represented Residomo in the matter.

    The description of PRK Partners’ team in the case has been updated.

  • Michal Palinkas Becomes Partner at Randa Havel Legal

    Michal Palinkas Becomes Partner at Randa Havel Legal

    Corporate/M&A specialist Michal Palinkas has been promoted to partner at Randa Havel Legal in the Czech Republic.

    Palinkas focuses on Internet services, commerce, industry, and TMT. He joined Randa Havel Legal in 2008 after graduating from Charles University in Prague.

    Among the deals Palinkas has worked on are the 2018 sale of a Czech jewelry chain to Poland’s Luxury Group (as reported by CEE Legal Matters on June 13, 2018) and the sale of a stake in the Astratex lingerie company to a company owned by the Czech Prime Minister (as reported on April 6, 2018).

  • Allen & Overy Advises Macquarie-led Consortium on Acquisition of Remainder of Innogy Grid Holding from RWE

    Allen & Overy Advises Macquarie-led Consortium on Acquisition of Remainder of Innogy Grid Holding from RWE

    Allen & Overy has advised a consortium of investors managed by Macquarie Infrastructure and Real Assets (Europe) Limited on its EUR 1.8 billion acquisition of a 50.04% stake in Innogy Grid Holding from RWE, making the consortium the sole owner of IGH. Freshfields Bruckhaus Deringer advised RWE on the deal.

    The acquisition comes less than a month since RWE itself acquired the stake (as reported by CEE Legal Matters on April 9, 2019). Freshfields — working with PRK Partners — advised RWE on that preliminary acquisition as well.

    The Allen & Overy team was led by London-based Partner Richard Evans with support from a Prague-based team consisting of Partner Prokop Verner and Counsel Jan Skuhravy, with corporate and due diligence input provided by Associates Jana Chwaszcz and Jakub Cech and financing input provided by Senior Associate Petra Mysakova and Associate Pavel Príhoda.

  • CHSH Advises SES Spar on Joint Venture for Prague Shopping Center

    CHSH Advises SES Spar on Joint Venture for Prague Shopping Center

    CHSH has advised SES Spar European Shopping Centers on its entrance into a joint venture with Czech investors DBK and Proxy Finance regarding the ownership and operation of the Europark Prague shopping center. EPI, a joint venture of DBK Praha and Proxy Finance, acquired a 77% stake in the shopping center from SES, which retains the other 23%. EPI was reportedly advised by Havel & Partners.

    The transaction closed in April 2019. 

    CHSH’s Vienna team consisted of Partners Mark Krenn, Thomas Zivny, and Heinrich Foglar-Deinhardstein, Senior Associates Filip Ballok and Ivett Szauftmann, and Associate Edda Unfricht. The firm’s team in the Czech Republic consisted of Partner David Kucera and Senior Associate Matej Bolek.

  • Legal Aspects of Autonomous Driving in the Czech Republic – A Comparison

    After the first industrial revolution, which involved the discovery and use of steam power, the second, which involved the discovery and use of electricity, and the third, which involved the use of electronics and information and communication technologies such as computers, the fourth industrial revolution has now dawned. This one involves the digitization and interconnection of computers, machines, and people. Examples of this new development are cyber-physical systems: Computer-monitored-and-controlled mechanisms, such as vehicle assistance systems, that support drivers in driving or completely replace them altogether (this is known as “Smart Mobility”), thanks to communication and interaction with other vehicles or stationary devices in the vicinity.

    First Reactions of Czech, German, and Austrian and Legislators to This New Trend 

    In Germany, the legislator introduced a wider concept of “vehicle driver” into the country’s Road Traffic Act in 2017. Under this Act, a driver is also a person who activates an automated steering function and uses it to drive the vehicle, even if that person does not control the vehicle with his own hands. While the driver may divert his attention from surrounding traffic when a highly-automated driving function is activated, the driver must remain vigilant so that he can assume direct control at any time. The driver must immediately take control of the vehicle if the automated system prompts him or if the driver recognizes or should recognize that the prerequisites for using the driving function have ceased to be met. German law distinguishes between the liability of the driver and of the vehicle operator (owner). The driver, unlike the operator (owner) (who is strictly liable), is not liable if he proves that he has not caused the damage by his fault (negligence or intention) – e.g., if he took control of the vehicle in time. 

    In Austria, the relevant regulation is even more concise. The Automated Driving Regulation, which currently regulates only the testing of autonomous microbuses, assistance systems on motorways, and military vehicles, was issued in 2016. This regulation emphasizes that although the driver may transfer certain driving tasks to autonomous systems, he still remains responsible for so doing, and in the event of a crisis situation, he must immediately take them back.

    While the German and Austrian legislators have already dealt with the question of liability of automated assistance systems, in the Czech Republic only a German-legislation-inspired working group proposal for an amendment to the Road Traffic Act has been prepared. Currently, the liability of autonomous vehicles in the Czech Republic must be deduced from existing liability rules, especially from the special rules of liability for traffic damage.

    On the basis of these special rules, the transport operator and vehicle operator (owner) pay damages caused by the “special nature of the operation” of the transport or the operation of a vehicle. There is no relief from liability, however, if the damage was caused by circumstances that originated in the vehicle’s operation (e.g. if damage has arisen due to the poor technical condition of the vehicle or due to failure of the driver). The possibility of waiving liability remains only if the damage was caused by circumstances in which no other ordinary traffic participant could have prevented the damage, despite making every effort that could reasonably have been required (e.g. as a result of force majeure, such as a natural disaster). 

    In connection with autonomous vehicles, it is worth discussing whether or not the element of a certain “autonomy” of a vehicle driving system should be included inthe above-mentioned concept of the “special nature of the operation.” This new aspect of the special operational nature of the transport could be taken into account when assessing the possibility of the operator’s liberation in the way that the damage caused by an autonomous vehicle has its origin in the operation and the operator cannot be relieved of his liability.

    The liability of the transport and vehicle operator must be distinguished from that of the driver, who is liable under the general rules on tort liability; i.e. fault-based liability. 

    Although in the medium term, the necessary legal framework to cope with the challenges of digitization in the automotive sector exists in the Czech Republic, it remains necessary to supplement and ultimately complete this legal framework with life experience through legal practice. Lawyers need to be aware of the possibilities and potentials available in the field, and to apply the law accordingly in cooperation with the authorities and courts.

    By Thomas Rechberger, Partner, Taylor Wessing Czech Republic

    This Article was originally published in Issue 6.2 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.

  • Glatzova & Co Advises CSOB on Establishment of Joint Venture with Mall Group

    Glatzova & Co Advises CSOB on Establishment of Joint Venture with Mall Group

    Glatzova & Co has advised CSOB on the creation of a joint venture with the Mall Group, to improve the MallPay payment service that was created last year to facilitate shopping at Czech shopping malls.

    CSOB’s involvement is contingent on the approval of the Czech antitrust authority. 

    The team of Glatzova & Co was led by Partner Jan Vesely.

    Glatzova & Co did not respond to our inquiry on this matter.

  • CMS and Schoenherr Advise on CSOB Acquisition of CMSS from Bausparkasse Schwabisch Hall

    CMS and Schoenherr Advise on CSOB Acquisition of CMSS from Bausparkasse Schwabisch Hall

    CMS Prague has advised Ceskoslovenska obchodni banka, the Czech division of KBC Group, on the acquisition of 45% stake in the Czech building savings bank Ceskomoravska stavebni sporitelna from Bausparkasse Schwabisch Hall, advised by Schoenherr.

    The total value is EUR 240 million, which represents a 1.54 multiple of the 2018 standalone net book value and a 9.20 implied multiple of 2018 net profit including discounted 2024 synergies.  Parties have agreed that dividends from 2018 and 2019 profits will fully belong to Ceskoslovenska obchodni banka (CSOB).

    According to KCB press release, the transaction will have an impact of approximately 0.30 percentage points on the KBC Group’s CET1 ratio, which stood at 16%, at the end of 2018 and would lower KBC Group’s 2% M&A buffer to 1.70%. Furthermore, the revaluation of KBCs 55% stake in Ceskomoravska stavebni sporitelna (CMSS) will lead to a one-off gain for KBC on the date of the closing of the transaction, estimated at approximately EUR 80 million. 

    As a result of this transaction, CSOB will hold 100% of CMSS and become the only shareholder of the company. The agreement is still subject to anti-trust approvals and is expected to close by summer 2019.

    CSOB is a universal bank in the Czech Republic, established by the State in 1964 and privatized in 1999. Since 2007 the bank is a wholly-owned subsidiary of KBC Bank. CSOB provides its services to all groups of clients, as well as SME, corporate, and institutional clients. In retail banking in the Czech Republic, CSOB is operating under brands brands CSOB and Postovni sporitelna (Postal Savings Bank; financial centers and outlets of the Czech Post network). 

    The CMS team was led by Partner Lukas Janicek and Counsel Patrik Przyhoda, supported by Partners Tomas Matejovsky and Libor Prokes, Associate Stepan Havranek, and Lawyers Lukas Reichmann and Jan Jezek. 

    Schoenherr Partner Martin Kubanek led the team in Prague      

  • JSK Advises Sedlacek Family on PONY Group Sale to Fine Gusto Nature

    JSK Advises Sedlacek Family on PONY Group Sale to Fine Gusto Nature

    JSK has advised the Sedlacek family on the sale of PONY Auto Trend s.r.o. and PONY Plast s.r.o. to Fine Gusto Nature Trade s.r.o. The Marian Jerabek Law Firm in Brno reportedly advised Fine Gusto Nature Trade on the acquisition.

    PONY Auto Trend focuses on the production and assembly of integrated sleeping cabins and spoiler modules for trucks and commercial vehicles of all weight categories. PONY Plast focuses on the production of semi-finished plastic laminate products, primarily for PONY Auto Trend.

    According to JSK, the firm focused on assisting with the due diligence of both companies, preparing and negotiating transaction documentation, and spinning off selected assets of PONY Auto Trend into a new company.

    The JSK team was was led by Partner Tomas Dolezil and included Managing Associate Michal Jendzelovsky and Junior Lawyers Ivana Taskarova and Lenka Petrakova.

  • CMS and FORLEX Advise on Acquisition of ICON Communication Centres

    CMS and FORLEX Advise on Acquisition of ICON Communication Centres

    CMS has advised the ESPIRA private equity fund on the acquisition, made with ICON’s executive management team, of ICON Communication Centres, an award-winning provider of multilingual contact centre services, from the joint administrators of former energy broker Utilitywise Plc. The Czech Republic’s FORLEX law firm advised Icon management, and Pinsent Masons reportedly advised the administrator.

    ICON was an independently managed and operated company, not connected to Utilitywise’s operational business. Financial details of the transaction were not disclosed.

    An ESPIRA press release describes ICON Communication Centres s.r.o as “a Prague-based contact center that utilizes technology-led outsourcing solutions to connect global brands with local customers,” and reports that its “nearly 300-strong team of brand evangelists deliver leading customer communication and acquisition strategies in over thirty languages.” According to press release, “for sixteen years, ICON has proved to be a valuable partner in growing customer loyalty for its clients thanks to its professional service delivery and competitive price point.”

    That ESPIRA press release states that the fund’s strategy “is to partner with exceptional Central European management teams that have balanced gender representation, in order to unlock their value and accelerate growth.” In addition, according to the press release, “existing clients will benefit from the stability that comes with the continued expertise of ICON’s executive management team and from the robust financial support from ESPIRA. ICON will maintain its core operations in Prague and will undertake appropriate expansion as new business opportunities arise.”

    CMS’s team consisted of UK Partner Laura McIntosh and, in Prague, Managing Partner Helen Rodwell, Counsel Patrik Przyhoda, and Associate Stepan Havranek.

    The FORLEX team was led by Partner Ivan Barabas, supported by Senior Associate Simona Zahradnickova.

  • White & Case and Allen & Overy Advise on PPF Arena 1 B.V. Euro Medium Term Note Program and Debut Issuance

    White & Case and Allen & Overy Advise on PPF Arena 1 B.V. Euro Medium Term Note Program and Debut Issuance

    White & Case has advised PPF Arena 1 B.V. on the establishment of its EUR 3 billion Euro Medium Term Note Program and the debut issuance of EUR 550 million 3.125% notes due March 2026 thereunder. Allen & Overy represented the mandated lead arrangers, joint lead managers, and dealers under the program agreement in connection with the change of terms of financing of the acquisition of CEE and SEE assets of Telenor by the PPF Group, as well as the joint lead managers and dealers under the program agreement and the first issuance of notes under the program agreement.

    White & Case describes the PPF Arena 1 B.V. group as “a leading provider of telecommunication services in the CEE region, consolidating telecommunication activities of the global investment group PPF across six national markets.” Its subsidiaries include O2 Czech Republic a.s. and Ceska Telekomunikacni Infrastruktura a.s. (CETIN) in the Czech Republic, O2 Slovakia s.r.o. in Slovakia, and the former subsidiaries of the Telenor Group in Hungary, Bulgaria, Serbia and Montenegro acquired by PPF Arena 1 B.V. in 2018 (as reported by CEE Legal Matters on March 26, 2018).

    In particular, A&O advised HSBC Bank plc and Societe Generale as global coordinators and joint arrangers and joint lead managers and dealers, including Bank of China Limited, London Branch, BNP Paribas, Citigroup Global Markets Limited, Commerzbank Aktiengesellschaft, Credit Agricole Corporate and Investment Bank, Erste Group Bank AG, ING Bank N.V., London Branch, PPF Banka a.s., and UniCredit Bank AG.

    According to White & Case, “the notes are unconditionally and irrevocably guaranteed by certain subsidiaries of PPF Arena 1 B.V. and are initially secured by a common security package over the group’s assets in multiple jurisdictions alongside the senior bank debt of PPF Arena 1 B.V., which added to the significant complexity of the deal. The notes are admitted to trading on the Global Exchange Market of Euronext Dublin and are rated BBB- by Fitch, Ba1 by Moody’s and BB+ by Standard & Poor’s.”

    The White & Case capital markets team advising on the transaction was co-led by Local Partner Petr Hudec in Prague and London-based Partners Stuart Matty and James Greene, assisted by Prague-based Associates Erik Illmann and Jan Vacula and London-based Associates Rebecca King and Nikita Thrakar. The Banking/Finance team was led by Prague-based Partner Jonathan Weinberg.

    The Allen & Overy team consisted of London-based Partner John Kicken, Senior Associate Peter Crossan, and Associate Michael Hossack, Amsterdam-based Partner Jonathan Heering, and Prague-based Counsel Silvie Horackova and Senior Associate Petr Vybiral. 

    Editor’s Note: After this article was published, Boyanov & Co. informed CEE Legal Matters that, working alongside Allen & Overy, it had advised the underwriters on Bulgarian elements of the issuance.