Category: Czech Republic

JSK has advised CVI on its bond financing investment in the parent company of the Algotech Group. GT Legal advised the Algotech Group.

Algotech is a Prague-headquartered IT company focused on contact centers, telecommunications software and hardware, enterprise information systems, cloud, CRM, GDPR, ServiceDesk, and data center services and solutions. According to JSK, the Algotech Group intends to use the funds for its further investments in innovative technologies.

CVI is an asset manager that focuses on investments in small and medium enterprises as well as real estate projects in Poland and other countries in Central and Eastern Europe.

“The Algotech Group is built on a solid foundation, and we believe, based on detailed analysis, that the group will continue to grow,” CVI Partner Radoslav Tausinger commented.

JSK previously advised CVI on its investment in the Saunia Group, also through a bond financing (as reported by CEE Legal Matters on August 23, 2022). 

The JSK team was led by Partner Tomas Dolezil and included Senior Associate Daniel Pospisil, Associate Jan Koprnicky, and Junior Lawyer Vojtech Pospisil.

The GT Legal team was led by Partner Lukas Zahradka and Attorney-at-Law Michaela Horvathova.

Kinstellar has advised the owner of Unuodesign on the sale of a majority stake in the company to the Hartenberg Holding. Mikulas & Partners reportedly advised Hartenberg.

Unuodesign is a Czech manufacturer and seller of children’s clothing and fabrics.

Hartenberg Holding is an investment fund focused on the Central European region.

Kinstellar’s team included Partner Jan Juroska and Senior Associate Matej Vecera.

Kinstellar, working with Linklaters, has successfully advised Credit Agricole Consumer Finance and Stellantis on their acquisition from ALD Automotive of, among others, LeasePlan’s Czech operations.

The transaction remains contingent on regulatory approval.

“This strategic acquisition includes ALD’s operations in Ireland, Norway, and Portugal, as well as LeasePlan’s business activities in the Czech Republic, Finland, and Luxembourg,” Kinstellar informed. “It marks a significant step forward in Credit Agricole Consumer Finance and Stellantis’ pursuit of growth in the mobility and long-term vehicle leasing sectors. The disposals align with commitments made by ALD to the European Commission in relation to its proposed acquisition of LeasePlan.”

LeasePlan is a Netherlands-headquartered fleet management and driver mobility company, providing vehicle leasing and management services.

The Kinstellar team was led by Partner Karla Rundtova and included Counsel Martina Brezinova, Managing Associates Adam Nemec and Radim Kotrba, Senior Associates Pavla Krskova and Jakub Stastny, Associates Igor Sebo and Artom Gnedin, and Junior Associates Simona Semanova and Lukas Sikel.

Kinstellar could not provide further information on the deal.

In January 2023, there was a significant amendment to consumer law, which on the one hand expanded the rights of consumers, and on the other hand introduced a number of new obligations for retailers.

The most discussed change is the information obligation of the seller regarding the discounts provided. If the seller states that they are providing a discount on the goods, they must also inform the consumer of the lowest price at which they sold the product in the 30 days prior to the discount. The measure is intended to prevent consumers from being deceptively tempted by fictitious discounts.

Another important change concerns liability for defects. By law, the entrepreneur is only liable for defects in the goods that already existed when the consumer took over the goods and that become apparent within two years. At the same time, it is presumed that if the defect becomes apparent in the first year, it already existed at the time of takeover (this period was six months before the amendment). During this time, it is up to the seller to prove, if necessary, that the item was without defects upon being taken over.

The list of unfair business practices has been expanded (among other things, it is a new unfair practice if the seller puts dual-quality goods on the market in several EU Member States, unless this is justified by objective facts) and the provision of other options to defend against unfair practices (withdraw from the contract within 90 days or request a discount on the price of the goods). The amendment also modifies the rules for publishing consumer reviews and expands the seller’s information obligations when concluding contracts over the phone or electronically.

The amendment does not introduce a comprehensive change in consumer law, but rather a series of partial changes. Businesses should review more closely whether they fulfil all the new obligations and whether there is no need to modify the sales process, business conditions or perhaps the complaints procedure.

By Ondrej Benes, Counsel, Eversheds Sutherland

Although negotiations regarding the method of capping electricity and gas prices are still ongoing, both at the national level and in the EU, the Government of the Czech Republic has already issued the expected amendment specifying the capping of energy prices for large enterprises.

According to the current EU Temporary Framework, large enterprises are limited in terms of the amount of support they can receive within the European Economic Area. This threshold is not limited in time, it will be applied to all support issued by individual Member States in connection with the Russian aggression in Ukraine. However, the established mechanism for calculating the threshold runs into problematic verification of approved support to large enterprises by individual states. In principle, the aforementioned amendment pre-empts the likely future adjustment of the EU Temporary Framework and introduces national thresholds that will only be applied to businesses within the Czech Republic.

The lowest threshold was set by the government at EUR 2 million. However, in the case of high eligible energy supply costs, it can be several times higher.

Large enterprises are now obliged to report the amount of property benefit (i.e. the amount of support exceeding the relevant thresholds) to the Ministry of Industry and Trade every quarter.

Exceeding this threshold during the quarter is not a violation, but the company will be obliged to transfer the excess property benefit back to the state budget.

By David Nemecek, Associate, Eversheds Sutherland

Clifford Chance, working with Vinge, has advised CBRE Investment Management on its sale of Swedish retail assets Port 73 and Gallerian Nian to NIAM.

“Port 73 is a 35,000 square-meter gross leasable area hybrid shopping center and retail park located in Haninge, a municipality in Stockholm County,” Clifford Chance informed. “Urban shopping center with a notable office area Gallerian Nian is located in the city of Gavle” and covers a 22,000 square-meter gross leasable area.

CBRE Investment Management is a real assets investment management company.

Headquartered in Stockholm, with local offices in Copenhagen, Helsinki, Oslo, and Luxembourg, real estate investment company NIAM describes itself as one of the largest private property owners in the Nordics.

The Clifford Chance team was led by Prague-based Partner Emil Holub and Counsel Aneta Disman and included Associate Ondrej Dolensky.

Clifford Chance could not provide further information on the deal.

Kocian Solc Balastik has advised an undisclosed seller on the sale of a 7,500 square-meter land plot in Uhrineves, Prague, to Uhrinevska Zahrada. Klimus & Partners advised Uhrinevska Zahrada.

According to KSB, “the land will be used by Uhrinevska Zahrada, which plans to develop three residential buildings with three to four stories each. The project, called Obytny Soubor Uhrinevska Zahrada, will offer approximately 70 new residential apartments.”

The KSB team included Partner Jiri Hornik and Lawyer Dana Jackova.

The Klimus & Partners team included Partner Roman Klimus and Lawyer Adam Sokol.

Dentons has advised the CPI Property Group on its debut sustainability-linked loan through a bilateral facility with MUFG. 

“The five-year senior unsecured loan totals EUR 100 million and will be used for general corporate purposes,” Dentons informed. “In keeping with CPIPG’s commitment to reduce the greenhouse gas emissions of its property portfolio, the margin of the loan will step up or down on an annual basis from 2023 onwards, dependent on the achievement of certain milestones in this regard.”

CPIPG is a real estate owner in Berlin, Prague, Warsaw, and other European countries.

MUFG, the Mitsubishi UFJ Financial Group, Inc. is a Japanese bank holding and financial services company.

The Dentons team was led by Prague-based Partner Jiri Tomola and included Associates Ondrej Vales and Leontyna Bartov, as well as teams from the firm’s London and Luxembourg offices.

Eversheds Sutherland has advised Remondis Group company TSR Czech Republic on its acquisition of Barko. Tovarek, Horky and Partners advised the sellers.

“This is the largest acquisition in the field of purchasing and waste management of metal and non-metallic waste in the last ten years,” Eversheds Sutherland informed. “The acquisition will further enhance TSR’s position in the recycling industry and expand its services in the scrap metal recycling sector. The acquisition will bring together two established players in the industry, creating synergies and opportunities for growth.”

TSR specializes in metal recycling and processes scrap metal in the Czech Republic. Barko is a Czech private company that collects non-ferrous and ferrous metals, cables, batteries, electrical waste, paper, car wrecks, catalytic converters, and precious metals.

The Eversheds Sutherland team included Counsel Petra Kratochvilova and Associate Jakub Verlik.

The Tovarek, Horky and Partners team was led by Managing Partner Tomas Horky and included Counsel Milan Michl.

Noerr has advised Orlando Management portfolio company SLR Gruppe on its acquisition of Sates. Samak reportedly advised the seller.

Sates is a Czech company specializing in precision machining.

Orlando Management is a German private equity group.

“We are excited to join forces and bring our state-of-the-art technology and expertise to the market,” SLR Group CFO Gunnar Halden commented. “With this acquisition, we can now provide our customers with even more comprehensive manufacturing solutions.”

The Noerr team was led by Partner Barbara Kusak and included Senior Associates Lucia Luptakova and Iva Bilinska, Advocates Radim Kotlaba and Lenka Sklenarova, and Legal Assistant Pavel Hrdy.

Editor’s Note: After this article was published, Samak confirmed it had advised the four founders of Sates on the sale. The firm’s team was led by Partner Zdenek Mikulas and included Senior Associate Jan Vozar.