Category: Czech Republic

On November 29, 2022, Eversheds Sutherland announced that the construction of the first Czech Ronald McDonald House by Nadacni Fond Dum Ronalda McDonalda (reported by CEE Legal Matters on April 21, 2021) had been finalized.

According to Eversheds Sutherland, the first Ronald McDonald House in the Czech Republic was officially opened on November 24, 2022: “soon the House will welcome the first families whose children are undergoing challenging treatment at the nearby University Hospital in Motol.”

As previously reported, Eversheds Sutherland provided pro bono legal advice to Nadacni Fond Dum Ronalda McDonalda on contractual documentation related to the start of construction of the Ronald McDonald House.

According to the firm, the entire project took over five years. “It is definitely not ‘just a job’ for anyone involved in the project. The enthusiasm and tremendous commitment of all those who helped turn the idea into reality is contagious. [We] would like to thank in particular the Foundation’s director, Ivana Pesatova, for her inspiration and unique collaboration,” the firm announced.

The Eversheds Sutherland team was led by Partner Dominika Vesela.

On August 23, 2022, CEE Legal Matters reported that JSK had advised Credit Value Investments on its investment in the Saunia Group through bond financing. CEE In-House Matters spoke with Radoslav Tausinger, Managing Director at Credit Value Investments (CVI), to learn more about the matter.

CEEIHM: To start, please tell us a bit about CVI and its operations in the region.

Tausinger: CVI is an independent asset manager focusing on Central and Eastern Europe, managing ten investment funds in private debt strategies, with total assets under management of below EUR 1 billion. While we have done a few minority equity investments, our key focus since our inception in 2012 has been on private debt. We have completed nearly 700 private debt investments, having invested almost EUR 2.7 billion in private debt in Poland and eight other countries in the region almost exclusively within the European Union. Funds managed by CVI invest in companies from a broad range of industries, including manufacturing, trade and services, technology, financial services, consumer, as well as real estate. We generally invest in companies that have a proven cash-flow generation model, which makes most start-ups/early-stage companies excluded. However, we have been supporting new projects in selected well-established industries, such as real estate or renewable energy.

CEEIHM: As reported by CEELM, CVI invested in the Saunia Group through bond financing. How does this type of private debt work and how common would you say it is in CEE?

Tausinger: Funds managed by CVI provide companies with a full spectrum of debt solutions including senior, junior, unitranche, as well as mezzanine, with typical tickets ranging from EUR 2 to 15 million. In a typical situation, a company issues a series of bonds that are then purchased in full by funds managed by CVI. This way the company receives all the proceeds from the sale of bonds and can use them for pre-agreed purposes, which typically include some form of growth or refinancing of other business obligations. The bonds would typically have a maturity of 3-5 years but we have also done shorter or longer. The main benefit for companies and their shareholders is that they are not selling parts of their businesses, and keep full control over the business, which is not the case for example in private equity investments. Private debt has been growing in the region but it is still behind Western European levels, so we have still a lot of ground to cover.

CEEIHM: What was it about Saunia Group that made you trust the investment?

Tausinger: Operating sauna worlds is a somewhat unique and very interesting concept. It is fully in line with the trends for a healthier lifestyle while the group is also making access to sauna worlds as convenient as possible. At least equally as important, Saunia Group is backed by a strong team of entrepreneurs who have built other successful businesses together before. Having such experience helps to a significant extent with every new venture. The group keeps finding new and unique locations such as most recently in Karlovy Vary.

CEEIHM: What were the most complex aspects of the deal from a legal perspective?

Tausinger: This is probably a question for JSK. One thing that comes to mind is that the group operates in two countries – besides its home market of the Czech Republic it also has a branch in Slovakia, and as result, there was a need for coordination of some Slovak aspects of the transaction as well. We also did the transaction in a swift manner, thus it required some quick reaction times.

CEEIHM: And why did you pick JSK as your advisor on the matter? 

Tausinger: We have done two transactions with JSK as our legal advisor in quick succession. We wanted to work with them as their Partner Tomas Dolezil has a very good reputation in the private capital industry in the Czech Republic. When we approached them, they were very responsive and ready to start working on short notice (as transactions are quite often on short notice). The cooperation went very well as they utilized their private market experience, and we hope to be able to work together on other transactions in the future.

Originally reported by CEE In-House Matters.

White & Case has advised Sberbank CZ insolvency trustee Jirina Luzova on the CZK 41 billion sale of Sberbank CZ’s assets to Ceska Sporitelna. Skils advised the buyer.

The transaction remains contingent on regulatory approval.

“The sale is a culmination of complex liquidation and insolvency proceedings that would satisfy all or the vast majority of registered claims of Sberbank CZ’s creditors and ensure an orderly transition of Sberbank CZ’s client relationships to Ceska Sporitelna,” White & Case informed.

“The unique transaction represents the largest M&A deal in the Czech banking sector since the privatization of major banks at the turn of the millennium,” according to Skils. “The distressed sale of the loan portfolio takes place as part of the largest and the most widely followed bankruptcy in Czechia’s recent history.”

Sberbank Europe subsidiary Sberbank CZ provides banking products and services for individuals, small and medium-sized companies, and large corporations.

Ceska Sporitelna is a Prague-headquartered bank and a member of the Austria-based Erste group.

The White & Case team included Prague-based Partners Tomas Jine and Jan Andrusko, Local Partners Martin Fronek and Jan Jakoubek, and Associates Ondrej Barton and Lukas Pavlik, as well as lawyers from the firm’s Washington and Brussels offices.

The Skils team included Managing Partner Karel Muzikar, Partners Karel Drevinek, Roman Janecek, and Pavel Grim, and Senior Associate Ivo Trojan.

Editor’s Note: After this article was published, Baker McKenzie Prague announced it worked together with White & Case to advise Jirina Luzova on the sale of Sberbank CZ’s loan portfolio to Ceska Sporitelna. “The transaction is part of the ongoing liquidation of all banking operations of Sberbank CZ following the revocation of its banking license by the regulator and its subsequent insolvency,” Baker McKenzie reported. The firm’s team included Prague-based Partners Libor Basl and Alexandr Cesar and Associates Slavomir Slavik, Martina Marchand, Petr Vojtech, and Jan Kolar.

Did You Know that, according to the Activity Rankings function of the CEELMDirect website, Havel & Partners has worked on 25 Czech client matters so far this year – more than any other law firm?

Kocian Solc Balastik, which has worked on 19 reported client matters so far this year, is not too far back, and three firms – Clifford Chance, Dentons, and Kinstellar – are tied for third with 14.

The top eleven is rounded out by Allen & Overy and PRK Partners, both of which have worked on ten reported client matters so far, White & Case, which has worked on nine, JSK, which has worked on eight, and DLA Piper and CMS, both of which have worked on seven.

Want to see which other firms have been particularly active in the Czech Republic or any other CEE market this year? Visit CEELMDirect.com, the world’s only truly dynamic legal directory, and find out!

Clifford Chance has advised Allwyn on its new senior facilities agreement with a syndicate of international banks. Allen & Overy advised the lenders, including UniCredit Bank Czech Republic and Slovakia, on the deal.

Allwyn is a lottery operator. It is set to become the operator of the UK National Lottery from February 2024.

According to Clifford Chance, “lenders under the senior facilities agreement have committed to providing funding in an aggregate amount of EUR 1.6 billion split across EUR 441 million of amortizing term loans due 2027, EUR 441 million of bullet term loans due 2028, a EUR 300 million revolving credit facility due 2027, and a GBP 380 million multipurpose facility available to be drawn as guarantees or term loans maturing in 2027.”

“Allwyn International will use the proceeds primarily to refinance existing indebtedness including its EUR 623 million syndicated loan (including the EUR 243 million revolving credit facility), its GBP 380 million bank guarantee facility, and up to EUR 300 million of other indebtedness, provide term financing for upfront costs ahead of the start of the UK’s Fourth National Licence in February 2024, and fund its general corporate purposes including shareholder distributions and acquisitions,” Clifford Chance informed.

According to Allen & Overy, “the facilities are documented under a facilities agreement, which is incorporated into the existing financing structure of Allwyn through the accession of the lenders under the facilities to the existing inter-creditor agreement.”

Earlier this year, Clifford Chance advised Allwyn on its NYSE public listing (as reported by CEE Legal Matters on February 7, 2022).

Clifford Chance’s team included Prague-based Partner Milos Felgr, Senior Associate Vladimir Rylich, and Associate Tomas Kubala, as well as London-based Partner Nicholas Kinnersley and Associate Alexandra Martin.

Allen & Overy’s team included Prague-based Partner Petr Vybiral and Associate Josef Pavlicek as well as London-based Partner Jan Skuhravy and Senior Associates Ryan Sarsfield and Jana Marsalkova.

Cytowski & Partners has advised Supernova on the USD 4.8 million series seed financing from Wing VC with the participation of EQT Ventures, Kaya VC, Credo Ventures, and other angel investors. Reportedly, Sedlakova Legal also advised Supernova and Gunderson advised Wing VC.

Supernova, based in Prague, is a YCombinator alumnus. According to Cytowski & Partners, “the company has built software tools to enable easy movement of design elements into the code base.”

Wing VC is Palo Alto, California-based seed stage venture fund.

Cytowski & Partners’ team included Partner Tytus Cytowski, Lawyer Eresi Uche, Associate Tomiwa Ogundipe, and Law Clerk Kunal Kolhe.

Clifford Chance has advised Komercni Banka on the financing of a solar energy power plant owned by Decci subsidiary FVE Czech Novum. Allen & Overy reportedly advised the lenders.

Komercni Banka is a member of the Societe Generale international financial group.

FVE Czech Novum is a Czech Republic-based renewable energy company.

According to Clifford Chance, “the financing was a key part of the ongoing investment strategy of the Decci Group. The Decci Group is an energy company focusing on renewable and innovative energy solutions in the Czech Republic. Through its common brand FVE Czech, the energy firm centers its attention on designing, building, and operating photovoltaic power plants using modern technologies.”

Clifford Chance’s team included Partner Milos Felgr, Senior Associate Dominik Vojta, and Associate Bara Becvarova.

Eversheds Sutherland has advised PJ Expedis on its merger with RSBC Logistics. Forlex reportedly advised RSBC Logistics.

PJ Expedis is a Czech forwarding logistics and warehousing company. RSBC Logistics is part of the Czech investment group RSBC. According to Eversheds Sutherland, RSBC Logistics acquired a majority stake in PJ Expedis.

Eversheds Sutherland’s team included Co-Managing Partner Borivoj Libal and Associate Marek Poloni.

Eversheds Sutherland has advised Conseq on the expansion of its real estate fund portfolio through a share-deal acquisition of production and storage assets in Breclav’s industrial zone.

Eversheds Sutherland previously advised Conseq on the acquisition of the Korso Karvina shopping center in Ostrava from Bluehouse (as reported by CEE Legal Matters on June 21, 2021) and the acquisition of Retail Park Podebradska in Prague from the KPD Group and Exafin (as reported by CEE Legal Matters on January 25, 2021).

Eversheds Sutherland’s team included Partner Dominika Vesela and Associate Rudolf Kristian.

Eversheds Sutherland has advised Germany’s Travelcircus on its full acquisition of the TPF Group.

The TPF Group is a Czech Republic-based accommodation sector company, operating since 2014. It operates the Travelking travel website, a travel and tourism operation that offers stay, wellness, spa, and travel facilities during the trip.

Travelcircus is an online booking platform for travel experiences. It was founded in 2014 in Berlin by Mathias Zeitler and Bastian Boeckenhueser.

Eversheds Sutherland’s team included Counsel Petra Kratochilova and Senior Associate Jakub Verlik.

Eversheds Sutherland did not respond to our inquiry on the deal.