Category: Czech Republic

  • Clifford Chance and White & Case Advise on Refinancing of AAA Auto International

    Clifford Chance and White & Case Advise on Refinancing of AAA Auto International

    Clifford Chance’s Prague office has advised the regional used car dealership AAA Auto International a.s. in connection with the planned refinancing of the acquisition of the company and agreeing the terms of operating loans for its entire group from CSOB.

    The firm negotiated the facility agreement, security documentation, and related interest insurance, and assisted in fulfilling the conditions of the loan drawdown. The Prague team provided the advice under Czech and Slovak law as well as the coordinating the services of external counsel in Cyprus.

    According to Clifford Chance, “AAA Auto International has been engaged in the sale of used cars for over 25 years, and also focuses on providing financial services and ICT development. It is the most successful company on the used car market in Central and Eastern Europe. The majority owner of the company is currently the UK-Polish private equity fund Abris Capital Partners.”

    Clifford Chance’s legal team was led by Partner Milos Felgr, who reported being “delighted to have the opportunity to represent such a well-known market participant as AAA Auto.” According to Felgr, “it was a pleasure to work with a client that had clear objectives and one that was so forthcoming and cooperative. This directness led to the successful completion of this complex cross-border transaction in such a short period. We look forward to the opportunity for further collaboration.”

    Felgr was primarily assisted by Clifford Chance Junior Associate Pavel Bogusky and Senior Associate Stanislav Holec, who advised on the Slovak law aspects of the transaction.

    Jan Siroky, Senior Lawyer at AAA Auto International, explained that: “We selected Clifford Chance based on their excellent performance when advising AAA AUTO Group on its disposal in 2014. Milos Felgr and his team used their experience and expertise to ensure a smooth transaction, guiding us through the complexities of this refinancing. Their advice helped us to negotiate a very competitive offer for which they have our sincere gratitude.”

    The White & Case team advising CSOB included Partner David Plch and Associates Ida Kucerova and Simona Rapava.

  • CMS and Kinstellar Advise on Sale of Ostrava Logistics Park

    CMS and Kinstellar Advise on Sale of Ostrava Logistics Park

    CMS Prague has advised Prologis on its sale of the Ostrava Logistics Park in Moravia-Silesia, in the Czech Republic, to CBRE Global Investors. Kinstellar advised the buyers on the deal.

    The logistics park is a 65,910 square meter modern Class-A logistics/light manufacturing property consisting of two buildings. It is reportedly fully occupied at present with five tenants.

    The CMS team was led by Partner Lukas Hejduk and included Associates Michal Samek, Petr Koral and Ivana Rehackova.

    Kinstellar’s team advising CBRE Global Investors consisted of Partners Klara Stepankova and Jan Juroska, Associate Rudolf Schichor, and Junior Associate Martin Holub.

  • New Head of Dispute Resolution and TMT at Kinstellar Prague

    New Head of Dispute Resolution and TMT at Kinstellar Prague

    Czech lawyer Zdenek Kucera is joining Kinstellar Prague as a Managing Associate and Head of Dispute Resolution and TMT.

    According to Kinstellar, Kucera “brings more than ten years of experience to the firm, having previously worked as a senior lawyer at Baker & McKenzie where he focused mainly on dispute resolution and legal work for the ICT (TMT) sector, [acquiring] an extensive track record in both these areas. Zdenek is known for providing hands-on and highly qualified advice. In his practice, he focuses primarily on dispute resolution and information technology advice as well as trade and commerce. He specializes in electronic contracting negotiations for technology contracts, internet liability and online marketing legislation. He also advises on public contract issues, namely in the technology sector. He has participated in legal assessments of IT products, acquisitions of companies, online projects structuring as well as representing clients in various kind of disputes. Recently, he assisted a global engineering company with commercial and litigation issues, a Czech bank with a complex outsourcing project, and a defense industry client on agreements with the Ministry of Defense.”

    Kucera joined Baker McKenzie in 2008, immediately after graduating from the Charles University in Prague. He also obtained a Ph.D. from Charles University in 2014.

    “We believe that Zdenek joining our firm will further strengthen our excellent position on the Czech market,” said Lukas Sevcik, Managing Partner of Kinstellar’s Prague office. “We see great potential in the dispute resolution area and the ICT sector and believe Zdenek will help us achieve our ambition of becoming a leading firm also in these areas.”

  • Dvorak, Hager & Partners Advises Pebal on Investment by JB Capital

    Dvorak, Hager & Partners Advises Pebal on Investment by JB Capital

    Dvorak Hager & Partners has advised Pebal s.r.o., a producer and supplier of packaging material in the Czech Republic, on investment into the company by JB Capital and the establishment of a joint venture. Havel, Holasek & Partners advised JB Capital on the deal.

    According to Dvorak Hager & Partners, “our legal services included complete preparation of the transaction documentation and support in negotiations.” The firm’s team was headed by Partners Stanislav Dvorak and Lukas Zahradka, supported by attorney Jana Kolarova.

    Havel, Holasek & Partners did not reply to our inquiry on the matter.

  • Matyas Kuzela Makes Partner of Randa Havel Legal

    Matyas Kuzela Makes Partner of Randa Havel Legal

    Matyas Kuzela has been made a Partner at Randa Havel Legal in Prague.

    Kuzela joined Randa Havel Legal in 2008 upon graduating from the Charles University in Prague, and he became a Head Senior Associate in 2013. He focuses on data protection and privacy, competition law, M&A, and commercial law.

    According to Randa Havel Legal, Kuzela “has extensive experience in projects related to the processing and transfer of personal data within banking groups, international organizations and E-commerce. Among others, he has represented a number of clients before the Czech data protection authority. With respect to M&A and competition, [he] advises clients on Czech and international transactions that are subject to regulatory merger clearance. Further, he represents clients before the competition authorities in cartel investigations and helps clients with strong market position comply with the competition law requirements. At present, [he] leads the team preparing clients for the new general data protection regulation (GDPR). He is a member of the International Association of Privacy Professionals (IAPP), the world’s largest information privacy organization.”

    “Matyas is an excellent lawyer and I am delighted that he has decided to continue with his professional career in our firm,” commented Martin Randa, Managing Partner of Randa Havel Legal. “Thanks to his experience and working enthusiasm he is a great asset to the firm and its clients.”

  • JSK and BADOKH Advise on 3TS Capital Partners and BHS Private Equity Fund Investments in ZOOT

    JSK and BADOKH Advise on 3TS Capital Partners and BHS Private Equity Fund Investments in ZOOT

    JSK has represented a fund managed by 3TS Capital Partners and BHS Private Equity Fund on a EUR 2 million investment and a EUR 2.5 million investment in the ZOOT online fashion store, respectively.

    JSK describes 3TS Capital Partners as “one of the leading European venture capital and private equity firms,” and says that BHS Private Equity Fund was “established by BHS Securities, a licensed securities trader, a member of the Prague Stock Exchange and one of the major non-banking securities traders in the Czech capital market.” JSK also describes ZOOT as “the leading Czech online fashion store,” and reports that it “has made it to number 43 on the prestigious FT1000 list of Europe’s fastest growing companies.”

    “We plan to mainly use this extra capital to strengthen our logistic and IT segments,” explained ZOOT’s co-founder and CEO, Ladislav Trpak. “And we’ll also use it to build more of our customer-friendly Try&Buy stores that allow our customers to try on online ordered items and pay for only the ones that fit best.” 

    BHS Private Equity Fund Partner Ludek Palata said: “We have been following Zoot’s performance since the very beginning. We have been impressed with their marketing skills, operational excellence and extremely customer friendly attitude, which are the reasons Zoot is constantly developing not only in the home market but now also within the region. Zoot largely uses advanced IT.”

    The JSK team was led by Partner Tomas Dolezil, who commented that “we were delighted to assist 3TS Capital Partners on its additional investments into this successful business and BHS Private Equity Fund on their entry into the e-commerce sector. We all believe that ZOOT will continue to be a major success story and that the new investments will contribute to this success.” JSK Of Counsel Nick Johnson advised on the English law aspects of the transaction. Senior Associate Helena Hailichova provided legal services to 3TS Capital Partners. Senior Associate Michal Jendzelovsky and a due diligence team made up of Junior Associates Michaela Krajickova, Barbora Safarikova, and Stepan Stancl advised BHS Private Equity Fund.

    The BADOKH team advising ZOOT and its shareholders was led by Partner Jakub Dostal and included Advocate Katerina Sedlata and Junior Lawyer Tomas Bodnar.

  • CMS Prague Adds Three to Real Estate Team

    CMS Prague Adds Three to Real Estate Team

    CMS has announced that Counsel Libor Prokes, Senior Associate Pavel Srb, and Associate Ivana Lobotkova have moved from Wolf Theiss to join the firm’s real estate practice in Prague. 

    According to CMS, “Libor Prokee and Pavel Srb have a broad practice with a strong focus on real estate transactional work, including sales and acquisitions and financings, and leasing and constructions matters.”

    “From the appointments of Libor, Pavel, and Ivana, compounded with the continuous growth and development of our own lawyers internally, CMS now has one of the most robust real estate teams on the market,” commented CMS Partner and Head of the firm’s Prague Real Estate practice, Lukas Hejduk. “Having acted opposite Libor and Pavel in numerous real estate transactions, we were particularly impressed at how well they understand the property business and the drive they have to get the deal done. We share the same commercial approach to transactions and believe they will make a perfect fit with our team.”

    “We are very positive about future opportunities in the region and expect our established position as a market leading advisor in CEE to be further entrenched with the merger with real estate powerhouse Nabarro as well as a new office opening in Bratislava,” Hejduk concluded.

    “We are very excited about joining CMS. Our combined experience and strength will enable us to act on the largest and most complex transactions on the market,” added Libor Prokes.

  • Lukas Zahradka Makes Partner at Dvorak Hager & Partners

    Lukas Zahradka Makes Partner at Dvorak Hager & Partners

    Lukas Zahradka has been promoted to Partner at the Dvorak Hager & Partners law firm.

    Zahradka focuses on M&A, banking and finance, real estate, and commercial law. Prior to joining Dvorak Hager & Partners in 2014, he worked for more than 11 years at Weinhold Legal. Zahradka graduated from the Faculty of Law of Charles University in Prague and is a member of the Czech Bar Association. 

    “Lukas Zahradka is a well-known expert in the field of M&A and finance law and has contributed greatly to the development of our firm,” said Dvorak Hager & Partners Managing Partner of Tomas Prochazka. “His appointment to Partner reflects his excellent results and the overall growth of our firm. Lukas will be involved in particular in developing our transaction advisory practice as well as advisory for financial institutions.”

  • Segall Takes Over as CMS Head of Banking & Finance in CEE

    Segall Takes Over as CMS Head of Banking & Finance in CEE

    Prague-based Partner Mark Segall has become CMS’s new Head of CEE Banking & Finance, taking the role over from Partner Paul Stallebras, who steps back to focus on his own practice at the firm.

    Segall joined CMS in 2010 after spending two years at Macfarlanes and three years at Ashurst in London, and then three and a half years as Director, Financial Sponsor Solutions at UniCredit Corporate & Investment Banking, all in London. He specializes in structured trade and commodity finance with an emphasis on the agricultural and natural resources sectors. He is also experienced in advising international clients on cross-border corporate and syndicated finance transactions in Central and Eastern Europe, and CMS describes him as “particularly active in advising international lenders on financings provided to Ukrainian and Russian corporates.”

  • Monitoring Employees at Work and Data Protection

    Conflict of Rights

    Throughout an employment relationship, there are conflicts in almost every activity between the employee’s right to privacy and the employer’s right to require the employee to carry out his/her obligations and to monitor whether such obligations are being fulfilled. This conflict is due to the fact that monitoring an employee’s activities can be considered an intrusion into his/her personal sphere and personal data processing.

    It’s not the aim of this article to address all the areas of such intrusions but only the area of electronic communications in the workplace, especially as pertaining to the Internet, e-mails, and similar activities where electronic communication is used.

    The definition of “personal data” does not merely include identification data, likenesses, or other unique data about a person, as many mistakenly believe, but also all data that can be related to a person in a manner defined by law.

    Legal Regulation

    A potential intrusion into an employee’s right to privacy must be assessed from the perspective of several legal regulations. Certain principles are defined in the Czech Civil Code (Section 81 et seq.); however, these are rather general. Specific provisions relating to personal data protection must also be taken into account. These are contained in the Czech Data Protection Act. The main rules, however, are defined in the Czech Labor Code.

    The Czech Labor Code provides that an employer may not, without serious reasons related to the special character of the employer’s activities, intrude into the privacy of an employee at the employer’s workplace and common premises by subjecting the employee to open or secret monitoring, tapping and recording of telephone calls, or monitoring of e-mails or of letters addressed to the employee. If there is a serious reason that is related to the special nature of the employer’s activities and which justifies such monitoring mechanisms, then the employer shall be obliged to inform the employee directly on the scope and manner of such monitoring.

    Moreover, employees are not permitted to use the employer’s means of production and work, including computer technology, or the employer’s telecommunication equipment for their own personal needs without the employer’s consent. This can be controlled by the employer in an appropriate manner.

    When is Monitoring Allowed?

    It is not easy to define the conditions under which monitoring is allowed. Completely different conditions may exist for monitoring a night watchman, telephone operator, operator of a nuclear power station, or senior manager. 

    Each job has its own specific characteristics that must be taken into account in each individual case when assessing the legality of the relevant monitoring instruments. Nevertheless, principles and general rules can be defined in advance. These arise in particular from the Czech Labor Code and Czech Data Protection Act.

    Principles

    First of all, the purpose of monitoring must be clearly defined; only then can monitoring be assessed as legitimate, and only then can the type of monitoring/controls taking place be distinguished, and finally whether or not the corresponding obligation as contained in the Data Protection Act can be considered fulfilled.

    The next principles are subsidiarity and adequacy. The monitoring instruments may be introduced only as an ultima ratio; i.e., if there is any other less intrusive way to inspect whether an employee’s obligations are being fulfilled, it should be preferred. If there is no other option, the monitoring should take place only in an adequate scope.

    One of the most important rules is transparency. Only if the employee is aware of the monitoring instruments and is able to create for him/herself a reasonable expectation of the monitoring can such employer’s behavior be considered legitimate. This fully corresponds with the principles embodied in the legal regulation.

    Case Law

    Decisions by Czech courts relating to employee monitoring are still rather rare. One decision, however, can be found in the Kasalova Pila case. In this case the Czech Supreme Court found that employee monitoring is legitimate where an employee uses his/her employer’s computer for his/her own personal needs (i.e., if he/she was visiting websites for more than 100 hours in a month), despite being forbidden from doing so. The Supreme Court found that it was acceptable to monitor the extent of such usage but not the content.

    By Drahomir Tomasuk, Counsel, and Jaroslav Zahradnicek, Advocate, Kocian Solc Balastik

    This Article was originally published in Issue 4.2 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.