Category: Czech Republic

  • Clifford Chance Appoints Milos Felgr as Czech Managing Partner

    Clifford Chance has appointed Milos Felgr as its new Managing Partner of its Prague office, effective May 1.

    Felgr previously led the firm’s Banking and Finance team in Prague and took over the role from Alex Cook, who will be relocating to the firm’s Munich office. 

    “I am delighted to take on the role of Managing Partner of our Prague office,” commented Felgr. “I would like to thank Alex on behalf of all our colleagues for his leadership and contributions for the past 10 years. I look forward to my new responsibilities, although I continue to focus primarily on my legal practice and clients, which I find very rewarding.”

  • Czech Republic Between Shortage and Shortfall: A Buzz Interview with Milena Hoffmanova of Baker McKenzie

    Emphasizing the urgency of healthcare reforms in the Czech Republic – given acute supply issues and the need to address systemic challenges effectively – Baker McKenzie Partner Milena Hoffmanova underscores the importance of collaborative efforts between stakeholders to ensure sustainable and equitable healthcare delivery in the country.

    “The Pharma industry in the Czech Republic is currently implementing one of the biggest changes in the regulation on the distribution of pharmaceuticals in recent years,” Hoffmanova begins. “An amendment entered into effect at the beginning of this year, with the rest to come into play later, bringing legislative changes meant to impact the availability of medicinal products in the country. Due to the Czech Republic’s pricing policies and import-export dynamics, we’ve faced numerous challenges posed by shortages of medicines – a problem and a topic for both the public, pharmacies and pharma businesses, and authorities.”

    Hoffmanova explains that the key amendments introduced in January aim to address shortages and improve availability, and include extended supply obligations for marketing authorization holders and stockpiling requirements for distributors. She elaborates: “The amendment brings several new obligations for marketing authorization holders as well as distributors. It mandates that marketing authorization holders must supply medicinal products for an additional one to two months, even after the reported date of interruption or termination of supplies. Additionally, upon the decision of the Ministry of Health, distributors might be required to maintain stockpiles of medicines to ensure availability, a task made difficult by the existing shortages.”

    Hoffmanova highlights the complexities of implementing these changes, particularly in cases of production shortages and “the ambiguous obligations regarding non-discrimination against pharmacies.” Despite efforts to enhance availability, she acknowledges the ongoing challenges and the limited leverage the Ministry of Health has in addressing systemic issues, and emphasizes the need for a balanced approach to pricing and supply chain management to mitigate shortages effectively.

    For context, Hoffmanova also points out that similar issues are being faced by neighboring countries in Central and Eastern Europe, such as Hungary and Poland, which have implemented comparable legislation. On the whole, she says “the region’s collective response to pharmaceutical supply chain issues is characterized by stricter regulations and increased penalties.”

    Shifting focus to the impact on local transactions and healthcare networks, Hoffmanova points to the influence of global pharmaceutical deals on local markets. She highlights “the continued success of pharmacy chains and growth of healthcare provider networks in the Czech Republic, driven by private investments.” However, she underscores that “the shortage of healthcare professionals in critical areas, like psychiatry, is posing challenges to that continued service expansion.”

    Regarding patient care, Hoffmanova acknowledges the system’s overall effectiveness but raises concerns about its long-term stability and the affordability of new, expensive treatments. “If treatments that can cost millions of Czech crowns are covered and become more frequent, the system will face a shortfall. So, we’ll either have to allocate significantly more public funds to healthcare, introduce coverage limitations, or require patients to participate more significantly in the costs of their healthcare. However, she notes there is “political reluctance to increase the financial burden on patients, due to past failures and public resistance.”

  • BBH Successful for Diamo in CZK 1 Billion Contract Dispute

    BBH has successfully represented the Diamo state-owned enterprise in a dispute concerning its obligation to perform a contract worth over CZK 1 billion.

    Diamo, with headquarters in Straz pod Ralskem, is an organization that implements the remediation of the consequences of mining activities after the extraction of uranium, ores, and (partially) coal mining in the Czech Republic.

    According to BBH, “the case involved a critical contractual issue and, had the court ruled otherwise, the operational integrity of Diamo would have been at risk. BBH also secured an award of full costs amounting to approximately CZK 5 million. The decisions of the Regional Court in Usti nad Labem and the High Court in Prague are now final and binding.”

    The BBH team included Partners Petr Vosahlik and Katerina Winterling Vorlickova and Trainees Tomas Ulip and Jiri Rydl.

  • JSK Advises Genesis Growth Equity Fund I on Sale of Homecare Holding to Penta Group

    JSK has advised the Genesis Growth Equity Fund I on its sale of the Homecare Holding to the Penta Group. AK Evan reportedly advised the buyer.

    The Genesis Growth Equity Fund I is a private equity fund that focuses on investments in small and medium-sized companies in the Czech Republic and Slovakia. It was opened for investment in 2019 with a size of EUR 40 million, with the usual size of an individual investment between EUR 2 and 6 million.

    Homecare Holding is a provider of professional home healthcare. It currently operates in Prague and Plzen and is aiming for gradual organic and acquisition expansion into other regions of the Czech Republic.

    “In recent years, we have managed to transform a traditional healthcare provider into a modern systematic concept of providing comprehensive care in a home environment,” Genesis Growth Equity Fund I Partner Radim Jasek commented. “Our approach is based on the high level of expertise of our nurses, supported by the use of a wide range of modern digital tools. Thanks to the new quality management, the company has been able to grow organically and through acquisitions while maintaining a high level of efficiency and quality of care provided.”

    The JSK team included Partner Tomas Dolezil, Attorney at Law Helena Hailichova, and Junior Associate Lukas Tomanek.

  • Allen & Overy Advises on Sale of Consilium Europe to Dukes Education

    Allen & Overy has advised the shareholders including J&T Arch Investments and founder Ondrej Kania on their divestment of a majority stake in Consilium Europe to Dukes Education in a CZK 1 billion transaction.

    Consilium is composed of three American academies in Prague, Brno, and Zagreb and operates a local curriculum school, three bilingual nursery and junior schools, and an educational consultancy, all based in Prague. The group also owns a British school in Spain.

    Based in London, Dukes Education describes itself as “a family of schools and educators, brought together by a common purpose: to give children the foundations for an extraordinary life, through education.”

    The Allen & Overy team included Partner Prokop Verner, Senior Associate Jana Chwaszcz, and Associate Martin Vykopal.

    Editor’s Note: After this article was published, BBH announced it had advised the Dukes Education Group. The firm’s team included Partners Petr Precechtel and Andrea Adamcova and Junior Associates Adam Krejci and Magdalena Novakova.

  • KSB Advises Seyfor Group on Acquisition of Digitask

    Kocian Solc Balastik has advised the Seyfor Group on its acquisition of a 35% stake in Digitask from Filip Drimalka.

    The Seyfor Group is a European ICT solutions provider.

    Digitask focuses on customers who want to accelerate the transformation of their business processes by implementing AI technologies.

    Back in 2023, KSB advised the Seyfor Group on its KS-Program acquisition (as reported by CEE Legal Matters on December 15, 2023) and, in 2022, on its acquisition of Commander Services (as reported by CEE Legal Matters on December 8, 2022).

    The KSB team included Partners Jan Beres and Drahomir Tomasuk and Junior Lawyer Josef Novotny.

    Editor’s Note: After this article was published, Sedlakova Legal informed CEE Legal Maters that it advised Filip Drimalka on the deal. The firm’s team included Managing Partner Jana Sedlakova, Senior Partner Michaela Garajova, and Junior Associate Radka Spackova. 

  • Allen & Overy and Skils Advise on Macquarie Asset Management’s Sale of GasNet to CEZ

    Allen & Overy has advised Macquarie Asset Management on the disposal of its 55.21% indirect interest in GasNet and GasNet Sluzby, at a total enterprise value of approximately EUR 4 billion. Skils advised CEZ on the acquisition.

    According to Allen & Overy, GasNet is the Czech Republic’s largest gas distribution network. GasNet Sluzby is GasNet’s associated network maintenance and operations business.

    “The regulated gas distribution network transports energy to 2.3 million connection points via 65,000 kilometers of pipelines that cover 80% of the country,” A&O reported.

    The Allen & Overy team included Prague-based Partner Jan Skuhravy, Senior Associates Cathy Gilmartin, Jana Chwaszcz, and Ivana Halamova Dobiskova, and Associates Martin Vykopal and Denisa Jonasova, along with further team members in London and Luxembourg.

    The Skils team included Managing Partner Karel Muzikar, Partners Roman Janecek, Jiri Kindl, and Pavel Grim, and Senior Associates Ivo Trojan and Martin Pastor.

  • Clifford Chance Advises Ceska Sporitelna on Financing for Oriens Group Acquisition of S&K Tools

    Clifford Chance has advised Ceska Sporitelna on financing the Oriens Group’s full acquisition of S&K Tools through its Oriens Fund III subsidiary, Czech Machining Holding.

    Operating as an independent privately-owned industrial holding, Oriens focuses on private equity investments in the Czech Republic, Hungary, Germany, Poland, and Slovakia.

    S&K Tools is a precision parts supplier specializing in the custom manufacturing of hydraulic components and tools for the automotive and engineering industries.

    Czech Machining Holding is a subsidiary of Oriens Fund III that specializes in manufacturing industrial equipment.

    The Clifford Chance team included Partner Milos Felgr, Counsel Dominik Vojta, Junior Lawyers Tomas Kubala and Sara Bartlova, and Paralegal Radek Sikora.

    Editor’s Note: After this article was published, GT Legal informed CEE Legal Matters it had advised Oriens on the acquisition of S&K Tools. The firm’s team included Partner Lukas Zahradka, Senior Associate David Fabian, and Junior Associates Gabriela Jandova, Jan Nespor, and Olga Kralickova.

  • Clifford Chance and NKA Advise on CSOB and Ceska Sporitelna Financing for Kofola’s Acquisition of Pivovary

    Clifford Chance has advised Ceskoslovenska Obchodni Banka and Ceska Sporitelna on the financing for Kofola Group’s joint acquisition of the Pivovary CZ Group together with the RSJ investment group and the Usovsko agricultural group. Nedelka Kubac Advokati advised Kofola on the acquisition.

    According to Clifford Chance, the Pivovary CZ Group is the fifth-largest brewing group in the Czech Republic, with annual production exceeding 800,000 hectoliters, of which more than a third is exported. The acquisition included “renowned beer brands such as Holba, Zubr, and Litovel. The transaction also includes the purchase of Fontana PCZG, whose main focus is the wholesale of beer and soft drinks.”

    The Kofola Group is a producer and distributor of non-alcoholic beverages in Central and Eastern Europe.

    The Clifford Chance team included Partner Milos Felgr, Senior Associate Hana Cekalova, and Junior Lawyers Ondrej Steco and Sara Bartlova.

    The Nedelka Kubac Advokati team included Partner Radovan Kubac and Senior Associate Ondrej Cizek.

  • Kinstellar and Moore Legal Advise on Genesis Capital’s Acquisition of GAF

    Kinstellar has advised the Genesis Private Equity Fund IV on the acquisition of a majority stake in Czech specialized metal product manufacturer GAF. Moore Legal advised Ludek Fofonka on the sale.

    Headquartered in Zamberk, the Czech Republic, GAF operates in metal fabrication, focusing on the complex custom processing of steel, stainless steel, and aluminum.

    According to Kinstellar, “the founder and current 100% owner, Ludek Fofonka, will retain a significant stake in the company. At the same time, key managers who are also investing in the company will take over [his] management role and, together with the new owner, plan to build on the successful development of the company in recent years.”

    Earlier this year, Kinstellar advised on Genesis Capital’s acquisition of the Schulte Group (as reported by CEE Legal Matters on March 20, 2024) and on its sale of Sanborn to Oriens (as reported by CEE Legal Matters on January 17, 2024).

    The Kinstellar team included Partners Jan Juroska and Tomas Cihula, Managing Associate Michal Kniz, Senior Associate Martina Mazurkova, Junior Associates Dominik Sevcu and Antonin Seidel, and Research Assistant Jakub Rubas.

    The Moore Legal team was led by Attorney at Law Jakub Zuban.