Category: Czech Republic

  • Havel & Partners Advises Sekyra Group on Acquisition of Land from Ceske Drahy

    Havel & Partners has advised the Sekyra Group on its acquisition of the remaining land in the vicinity of the Smichov railway station in Prague from Ceske Drahy.

    The Sekyra Group is a property development company.

    Established in 1993, Ceske Drahy is a railway operator in the Czech Republic providing regional and long-distance services.

    According to Havel & Partners, “the large-scale project Smichov City is already being built on the land, where approximately 12,000 people are expected to live and work upon completion. Smichov City is a new Prague-based comprehensive district with a number of commercial and residential buildings, services in the form of shops, supermarkets, and restaurants, two hectares of green space in the form of three parks, a school, and a link to the transport terminal or the existing Smichov railway station. However, it is also awaiting extensive modernization as part of the whole project.”

    Havel & Partners did not respond to our inquiry on the deal.

  • White & Case Advises Trinity Bank on Office Building Acquisition in Prague

    White & Case has advised the Trinity Bank on its acquisition of the Na Prikope 33 office building in Prague.

    “With its central and prestigious location, and the recent refurbishment preserving its rich architectural history, the building is set to become the bank’s new premises within the coming months,” White & Case reported.

    According to the firm, “the transaction represents the largest acquisition in the real estate office segment in the Czech Republic this year.”

    The White & Case team included Partner Vaclav Kubr and Associates Lucie Zanaskova, Kamila Dankova, Milan Horak, and Gabriela Blahoudkova.

    White & Case did not respond to our inquiry on the matter.

  • Finreg Partners Helps Investown Secure First Crowdfunding License in Czech Republic

    Finreg Partners has successfully advised Czech Republic-based crowdfunding platform Investown on obtaining the first European crowdfunding service provider license in the country.

    According to Finreg Partners, through licensing proceedings before the Czech National Bank, Investown was granted the license of a European crowdfunding service provider (ECSP) on October 24, 2023. “This marks the first-ever ECSP license granted in accordance with EU Regulation 2020/1503 in the Czech Republic.”

    Investown is a real estate crowdfunding platform that enables investors to invest in loans secured by real estate assets. It is partially owned by CS Seed Starter, a seed starter program of Erste Group member Ceska Sporitelna.

    The Finreg Partners team included Partners Jan Sovar and Ondrej Mikula, Senior Associate Anna Kotasova, and Associates Denis Tichanek and Marketa Valuskova.

  • Briza & Trubac Advises on Sale of Vcelka Group to EUC

    Briza & Trubac has advised shareholder Vojtech Kubec on the sale of the Vcelka Group to EUC. Vilimkova Dudak & Partners reportedly advised EUC.

    According to the firm, the Vcelka Group is the largest provider of domestic healthcare services in the Czech Republic.

    EUC is a Czech healthcare group describing itself as the largest network of outpatient clinics in the Czech Republic. EUC is now expanding its portfolio of healthcare services through the domestic healthcare segment, the law firm reported.

    The Briza & Trubac team included Partners Patrik Kozeluha and Barbora Klimesova and Attorney at Law Tomas Munzar.

  • JSK Advises Genesis Private Equity on AV Media Group Acquisition

    JSK has advised Genesis Private Equity Fund IV on its acquisition of the AV Media Group. CK Legal reportedly advised the buyer as well. Tarpan Legal reportedly advised AV Media.

    The transaction remains contingent on regulatory approval.

    According to JSK, since its establishment in 1992, “AV Media has established a leading position in the field of audio-visual technology in the Czech Republic and surrounding countries. Its business consists of two main pillars: AV Media Systems, which designs and integrates complete audio-visual solutions for customers in the education, public administration, cultural, and commercial sectors, and AV Media Events, which provides complete technology solutions for organizers of conferences, exhibitions, social, cultural, and sporting events.”

    The Genesis Private Equity Fund IV is a private equity fund of Genesis Capital that offers financing for growth and development to small and medium-sized companies in Central Europe. Since 1999, Genesis Capital has advised six private equity funds with a total volume exceeding EUR 350 million.

    According to JSK, “GPEF IV will acquire a majority stake in AV Media and two of the three founders will also keep a stake. The key managers of the group will also become shareholders. The joint intention is to accelerate the growth of the group, either through the expansion of the product portfolio or through selected acquisitions in the region.”

    The JSK team included Partner Tomas Dolezil and Senior Associates Klara Smidova, Daniel Pospisil, and Vladena Svobodova.

    Editor’s Note: After this article was published, CK Legal confirmed its involvement to CEE Legal Matters. The firm’s team included Managing Partners Magdalena Golonka and Antoni Liskiewicz and Partner Agata Kowalska.

  • Havel & Partners Advises Turk Electronik Para on Acquisition of Twisto Payments from Zip

    Havel & Partners has advised Turk Electronik Para on its acquisition of Twisto Payments from Australia’s Zip. Schoenherr reportedly advised Zip.

    Turk Electronik Para is a Turkish electronic money company.

    Twisto Payments is a Czech Republic-based start-up.

    Zip is a “buy now pay later” financial technology company with operations in Australia, New Zealand, and the US.

    According to Havel & Partners, “financial services provider Twisto has introduced the first Buy Now, Pay Later payment system in the Czech Republic. Besides deferred payments, it also allows customers to make purchases in installments in its partner online stores. The innovative fintech start-up was acquired by Australian firm Zip in 2021, which has now sold it as part of a series of divestments of its European entities.”

    The Havel & Partners team included Partner Jan Koval, Managing Associate Martin Stancik, Senior Associate Josef Bouchal, Associate Martin Rott, and Junior Associates Jan Mozol and Jan Skalny.

  • Reals and Clifford Chance Advise on Mint Purchase of 168-Unit Prague Residential Project from Finep

    Reals has advised the Mint Residential Fund on its acquisition of a 168-apartment built-to-rent residential project in Prague 9 from Czech developer Finep. Clifford Chance advised the seller.

    According to Clifford Chance, the transaction value for the residential complex in Hloubetin was close to one billion Czech crowns. “The project involved the conversion of a former industrial facility, the Veltex building, into a vibrant residential hub, offering a diverse range of unit types, including studio apartments and spacious two and three-bedroom flats. At present, this marks Finep’s ninth project sold under such terms.”

    Finep has a 23-year history in the Czech real estate market. The firm has delivered over 15,000 residential units and 200 houses. The company offers diverse housing options, including personal ownership, cooperative ownership, and rental solutions, emphasizing affordability.

    Mint is a retail real estate fund focused on residential properties and has been active for 20 years. Over that time, the value of managed assets exceeded CZK 15 billion. This marks Mint’s fourth acquisition, following Vysocany, Brno, and Plzen.

    The Reals team included Partner Miroslav Dudek and Attorney-at-Law Zdenek Chroust.

    The Clifford Chance team was led by Partner Emil Holub and Counsel Milan Rakosnik and included Associate Josef Lysonek, Junior Lawyer Jiri Krejca, and Paralegal Daniel Honc.

  • Clifford Chance Advises Banks on Financing for Carlyle’s Acquisition of Czech Meopta Group

    Clifford Chance has advised a club of banks led by Ceska Sporitelna, Ceskoslovenska Obchodni Banka, and UniCredit Bank Czech Republic and Slovakia and including Komercni Banka, Raiffeisenbank, and Raiffeisen Bank International AG on financing Carlyle’s acquisition of Czech optical specialist Meopta.

    As reported by CEE Legal Matters on June 6, 2023, Dentons advised the shareholders of the Meopta Group on the sale. White & Case and, reportedly, Linklaters and Latham & Watkins advised Carlyle. The transaction closed in October 2023.

    Founded in 1933 and headquartered in Prerov, the Czech Republic, Meopta is a vertically integrated developer and manufacturer of high-precision specialized industrial and handheld optical, opto-mechanical, and opto-electronic solutions.

    Carlyle is an investment firm. According to Clifford Chance, Carlyle will seek to support Meopta’s growth in partnership with its management team by “capturing the opportunity in more advanced built-to-spec use cases through an increased focus on R&D, capitalizing on attractive opportunities in a diverse range of end markets, expanding its international presence through the creation of a direct sales network, and improving its operations.”

    The Clifford Chance team in Prague and London was led by Partners Milos Felgr and Jim MacHale and included Counsel Dominik Vojta, Senior Associate Emily James, and Associates Tomas Kubala and Emma Scott.

  • Taylor Wessing Advises Shape Corporation on Panattoni Park Pilsen West II Tenancy

    Taylor Wessing has advised the Shape Corporation on its built-to-suit rental agreement in the Panattoni Park Pilsen West II industrial park. 

    The Shape Corporation Czech Republic is a US company dealing in both metal forming and impact energy absorption used to protect passengers in the transportation industry.

    According to Taylor Wessing, “the US company has been gradually moving operations from its old premises in the Borske Pole district to the new site while expanding production of its passenger safety crumple zones for automobiles. On September 21, 2023, the Shape Corporation launched production at the new facility, where up to 700 employees will work.”

    The Taylor Wessing team included Partner Marketa Cvrckova, Senior Associate Adela Kucerova, and Associate Monika Bartosova.

    Taylor Wessing could not provide additional information on the deal.

  • Czech Republic: Major Amendment to Labour Code

    The latest amendment to the Labour Code implemented, among other things, the EU Directives on Work-life Balance and on Transparent and Predictable Working Conditions into Czech law. The amendment was enacted by the President of the Czech Republic on 17 September 2023 and entered into force shortly thereafter, on 1 October 2023. The deadline for transposing these directives had already passed, so it is a case of better late than never.

    The amendment brings in a number of fundamental changes to Czech labour law. In particular, it introduces paid leave for employees hired outside of standard employment relationships, it clarifies the rules for remote working and it simplifies electronic communication, making it easier to deliver and sign various employment documents electronically.

    Remote working

    One of the most significant changes in adapting the Labour Code to the modern working environment is the codification of remote working (or telework) regulations. Remote working is only possible by written agreement with the employee, and any existing informal remote work arrangement must be formalized in writing by the end of October 2023. In certain specific circumstances (e.g. during a pandemic), the employer can also unilaterally order employees to work remotely. Remote work can be performed anywhere except at the employer’s own workplace. The agreement may cover multiple locations.

    The standard notice period is 15 days, but a different period can be agreed as long as it is the same for both parties. For employees working only remotely outside the employer’s workplace, it can be agreed that the remote working agreement cannot be terminated by either party.

    The amendment provides three options for reimbursing the costs for remote work:

    • Reimbursement of the costs actually incurred;
    • An hourly lump sum set by decree of the Ministry of Labour based on the data published by the Czech Statistical Office (these are subject to favourable tax treatment; lump-sum reimbursements above the statutory rate do not benefit from this scheme); or
    • Agreement that the employee is not entitled to any or only a partial reimbursement of costs.

    Working conditions of protected employees

    Although the amendment does not automatically grant parents the right to work remotely, it does entitle them to receive written justification from their employer if their request to work remotely is turned down. This entitlement applies to parents caring for a child eight years old or younger or for anyone with long-term dependence on them, as well as to pregnant women and women on maternity leave. Any justification for refusal must be made on objective, operational grounds. Failing to provide justification may yield a CZK 200,000 fine.

    Employers will also be required to justify in writing any decision not to comply with any request made by these protected groups of employees for shorter working hours or other adjustments to their working hours – requests can only be refused if it is not viable on serious operational grounds.

    Simplified e-communication

    The amendment narrows the list of important documents that must be delivered “by hand”, meaning that many documents can now be delivered without meeting these stricter requirements. The stricter requirements continue to apply only to the following documents: notice of termination (and other unilateral termination documents), warning letters, recall or resignation from the position of senior employee and salary statements. When delivered via an electronic communications service (e. g. email or even WhatsApp), these documents will be considered delivered once fifteen days have passed since the day of delivery. However, their electronic delivery to the employee will only be possible with the employee’s prior written consent (in a separate statement), which may be revoked at any time.

    If employment documents are concluded via an electronic communications network or service, the employer must send a copy thereof to a private electronic address of the employee (as previously communicated by the employee). The employee may withdraw from any document concluded via electronic services in writing, albeit no later than 7 days from the date of their delivery. In addition, documents delivered by employees no longer have to carry the employee’s qualified electronic signature. A simple electronic signature (DocuSign, scan of signature etc.) will suffice.

    Extended duty to inform

    The amendment also touches on the employer’s duty to inform. It requires employers to disclose to the employee an increased number of facts (e.g. information on probationary periods, professional development, rest periods etc.) no later than seven days after the employment relationship commences. The requisite information can be included in a separate information leaflet, the employment contract, internal regulations or by informing the employee electronically.

    The duty to inform will be significantly more expansive with regard to employees sent to perform work in other countries. The employer’s duty to inform now also extends to part-time employees, who will be entitled to know the approximate duration of their working time.

    All information transmitted electronically must be communicated in a way that allows the employee to save and print it. The employer is also required to keep a record that the employee received the requisite information.

    Changes to part-time employment

    The changes in this area primarily aim to bring so-called agreements on work performed outside the employment relationship (dohody o pracích konaných mimo pracovní poměr) more closely into line with employment relationships and to increase the rights of employees working under these agreements. The main changes are as follows:

    • The employer will now be required to schedule working hours three days in advance, unless the employee and the employer agree otherwise.
    • Entitlement to meal breaks or time off for any permissible obstacles to work on the part of the employee (such as attending a medical appointment).
    • Extra pay for working on public holidays, night work, work in difficult working environments and weekend work.
    • Right of employees to take paid leave of approximately 25 hours for every 300 hours worked (this change will take effect on 1 January 2024).
    • The right to ask the employer to switch to a safer form of employment (i.e. standard employment contract). The employer must provide a written response within one month.
    • The right to demand reasons in writing for terminating the agreement if the worker believes that the employer did so because the worker legally asserted some of his or her rights.

    By Kamila Seberova, Counsel, Wolf Theiss