Category: Czech Republic

Former Squire Patton Boggs Counsel Jaroslav Tajbr has joined Eversheds Sutherland’s Prague office as a Partner.

According to Eversheds Sutherland, Tajbr will be responsible for the areas of IP and IT law. Before joining, he spent six years with Squire Patton Boggs, almost four years with Noerr, eight years with DLA Piper, and a further seven years with CMS.

“I look forward to Jaroslav contributing his expertise to the further development of the firm in the IP and IT law sector,” Prague Office Co-Managing Partner Borivoj Libal commented.

“I am delighted to join the team at Eversheds Sutherland, a law firm that is leading both globally and locally,” Tajbr added. “I see this not only as a major professional step, but also as a commitment to further development. I believe that my experience and expertise will be an asset to the existing team and will support the firm’s already very strong position in the Czech and Slovak markets.”

Clifford Chance has advised KKCG on the acquisition of the end-to-end software engineering and consulting platform Avenga from funds managed by Oaktree Capital Management and Cornerstone Investment Management.

KKCG is an investment and innovation group with expertise in lotteries and gaming, energy, technology, and real estate. 

Avenga is an engineering and consulting platform with industry knowledge in pharma, insurance and finance, and advanced manufacturing.

“Avenga brings innovative solutions and expertise to the table, aligning seamlessly with KKCG’s strategic vision,” KKCG Investment Director Michal Tomanek commented. “Known for its commitment to cutting-edge technology and client-centric approaches, Avenga enhances our capabilities and reinforces our position in the market”

The Clifford Chance team included Prague-based Managing Partner Alex Cook, Partner Milos Felgr, Counsels Michal Jasek and Dominik Vojta, Senior Associate Stanislav Holec, and Junior Lawyers Jiri Krejca, Tomas Kubala, and Petr Rysina, Warsaw-based Associates Nikoletta Koziol and Katarzyna Kuchta and Junior Lawyer David Herich, as well as further lawyers in the US, the UK, Germany, Australia, Luxembourg, and Belgium.

Editor’s Note: After this article was published, Nedelka Kubac Advokati announced it had advised the KKCG Group on its acquisition of Avenga as well. NKA’s mandate included the coordination of merger-control notifications in the US, Poland, and North Macedonia. The firm’s team included Partner Radovan Kubac, Counsel Richard Maliniak, and Senior Associate Jindrich Kadoun.

Subsequently, Redcliffe Partners announced it had advised KKCG alongside Clifford Chance Prague. The firm’s team included Partner Albert Sych, Associates Kateryna Zheltova and Zakhar Kymberskiy, and Junior Associate Georgy Smirnov.

Clifford Chance has advised Mezzanine Capital, via MCI ETA, and J&T Banka on the mezzanine refinancing of the RT Torax Group and new acquisition financing for the Nordica Building property in Ostrava.

Mezzanine Capital is a provider of tailored credit solutions.

J&T Banka has been offering services and consultancy since 1998, including multigenerational asset and succession management, investment advisory, securities trading, asset administration, and structuring. 

The RT Torax Group is an investment group founded in 1994, in Ostrava, by Radek Snita and Tomas Haring. The investment group is active in many areas, including automotive and real estate.

Back in 2021, Clifford Chance advised the same lenders on the financing of RT Torax Group’s acquisition of Nova Karolina Park in Ostrava (as reported by CEE Legal Matters on March 19, 2021).

The Clifford Chance team included Partner Milos Felgr, Associate Bara Mika, and Junior Lawyer Sara Bartlova.

Kocian Solc Balastik has advised J&T Arch Investments on its investment in the BHP Hotels fund, which acquired a 45% stake in The Westminster London, Curio Collection by Hilton hotel.

J&T Arch Investments is the J&T Group’s main investment platform. It invests in businesses, projects, and partnerships that the group has helped to build over the past 25 years and manages the assets of not only the founders of the J&T Group but also private and institutional investors.

According to KSB, “located in central London, the five-star hotel is within walking distance of a number of major landmarks.”

Back in 2022, KSB advised J&T IB Capital Markets on a bond issuance by J&T Arch Convertible (as reported by CEE Legal Matters on December 14, 2022), on a bond issuance by J&T Energy Financing CZK (as reported by CEE Legal Matters on August 24, 2022), and on J&T Banka’s issuance of subordinated unsecured income certificates (as reported by CEE Legal Matters on July 21, 2022).

The KSB team included Partner Jiri Hornik and Lawyers Jakub Porod and Karolina Vosatkova.

Allen & Overy has advised Cordiant Digital Infrastructure Czech portfolio company Ceske Radiokomunikace on its acquisition of the Cloud4com and DC Luzice data center and cloud services sector businesses from the Aricoma Group. Bird & Bird reportedly advised the Aricoma Group.

According to Allen & Overy, “Cloud4com is set to be acquired for an initial consideration of CZK 870 million, with a further amount payable up to a maximum of CZK 485 million, depending on Cloud4com’s 2024 earnings performance. DC Luzice is being acquired for CZK 130 million, also subject to customary adjustments.”

Cordiant Digital Infrastructure Limited is a Guernsey-based externally managed closed-ended investment company.

Ceske Radiokomunikace specializes in telecommunications and ICT services for wholesale and business customers, including wireless/optical options, voice services, internet connection, and data solutions.

The Aricoma Group is a provider of a wide range of end-to-end services and IT solutions.

The Allen & Overy team included Partner Prokop Verner, Senior Associates Jana Chwaszcz and Ivana Halamova Dobiskova, Senior Tax Advisor Michal Dusek, and Junior Lawyer Tomas Spacek.

Clifford Chance has advised Komercni Banka on the financing of Penta Real Estate’s acquisition of CSAD Praha Holding.

The financing syndicate also included Ceska Sporitelna and the Raiffeisen Group.

Penta Real Estate was formed by separating the real estate division from the company Penta Investments, whose origins date back to 1994. Penta Group entered the real estate sector in 2005. At present, its portfolio includes more than 35 projects in the commercial, residential, and retail sectors.

According to Clifford Chance, “the transaction, which involves the purchase of prime parcels in Prague, marks a significant move in the real estate development sector. While the purchase price remains undisclosed, the deal encompasses strategically significant land, such as Karlin, Smichov, Zlicin, and other areas in the city center.”

“We are committed to supporting big and transformative initiatives that contribute to the development and growth of the real estate sector,” commented Komercni Banka Real Estate Finance Transaction Manager Ales Novak. “This collaboration aligns with our dedication to fostering innovation and sustainable progress in the industry.”

The Clifford Chance team included Counsel Milan Rakosnik, Senior Associate Hana Cekalova, Associates Josef Lysonek and Jan Christelbauer, and Junior Associates Ondrej Steco, Simon Dusek, Simon Vanek, and Adam Fanta.

Clifford Chance could not provide additional information on the deal.

Cytowski & Partners and Svoboda Koubkova have advised UltimateSuite on its sale to Service Now. Kinstellar, working with Covington & Burling, advised Service Now.

UltimateSuite is a Czech Republic-based task mining tech start-up.

San Francisco-based Service Now is an American software company that develops a cloud computing platform to help companies manage digital workflows for enterprise operations.

The Cytowski & Partners team included Partner Tytus Cytowski, Counsel Michal Fert, and Associates Eresi Uche, Kunal Kolhe, Fabiana Centurion, and Heidi Fan.

The Svoboda Koubkova team included Partner Vaclav Svoboda, Senior Associate Katerina Svecova, and Associates Simona Ichnovska, Karel Navratil, and Filip Hrkal.

The Kinstellar team included Partner Jan Juroska, Managing Associates Michal Kniz and Petr Bratsky, Senior Associates Tereza Holubova and Jakub Stastny, and Research Assistant Jakub Rubas.

KSB has advised J&T Banka on the refinancing of the Fidurock Group, with the value of the financing obtained potentially reaching up to CZK 1 billion.

The Fidurock Group is engaged in developing, acquiring, and operating retail parks in the Czech Republic and Slovakia. According to KSB, “the Group has been building up a portfolio of retail parks and development projects whose total property value exceeds CZK 3.1 billion. To date, its portfolio includes 11 retail parks with a leasable area of over 115,000 square meters, which it owns and leases out.”

The KSB team included Partner Vlastimil Pihera and Lawyer Josef Kriz.

Glatzova & Co has advised early-stage fund Reflex Capital on its investment in Digitoo.

Digitoo is a start-up that focuses on digitizing accounting with the help of artificial intelligence. 

According to Glatzova & Co, “the purpose of the investment is to support the international expansion of Digitoo.”

The Glatzova & Co team included Partner Jan Vesely and Associate David Kytler.

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

There are imminent changes in the Czech Republic’s legal and economic landscape – including a significant overhaul of the tax system, pending legal updates on class actions and the use of experts in court, and evolving trends in litigation financing and business solvency – all of which directly impact the work of lawyers, according to Weinhold Legal Associate Partner Zbysek Kordac.

Focusing first on the upcoming changes to the tax framework, which will enter into effect along with the New Year on January 1, 2024, Kordac begins by noting “the changes are substantial and will impact a wide range of our clients. The modifications in energy taxation, in particular, are expected to alter the financial dynamics of businesses significantly. It’s crucial for businesses to understand these changes and to strategize accordingly,” he stresses.

Kordac also reports there is a pending “draft amendment to the law on experts. This amendment is poised to have a profound effect on civil proceedings – it alters the way experts are utilized in legal cases, potentially changing the landscape of litigation and dispute resolution,” he explains.

Additionally, Kordac says that there has been movement on the legislative front focusing on class action suits. “This has been a topic of discussion for several years now,” he says. “The legislation is not yet in its final form, and there’s a sense of anticipation in the legal community – the outcome of this legislation will shape how class actions are conducted in the future.”

As for litigation itself, Kordac highlights an interesting trend existing in the Czech Republic. “Litigation financing is becoming more commonplace in our country. In the past, it was rare to see cases financed by third parties, but now it’s increasingly normalized, which alters the dynamics of how legal cases are pursued and financed,” he says.

On a different note, taking stock of the economy of the Czech Republic, Kordac says that “the post-COVID era and ongoing economic challenges have led to a notable trend in insolvencies. While not a majority, a significant number of businesses and investment groups are struggling, leading to increased concerns about financial stability and solvency.”

Finally, focusing on specific areas of the economy, he reports that “the TMT sector is flourishing, while the construction industry is gaining momentum after a period of high commodity prices. We’re seeing a shift towards more infrastructure projects, including highways, rather than residential developments,” Kordac explains. “This shift is likely to increase the industry’s output in the coming years.”