Category: Czech Republic

CMS has advised the Via Salis consortium, comprising Vinci and Meridiam, on the D4 highway public-private partnership project in the Czech Republic. Kinstellar, working with Linklaters, advised the financing banks. White & Case advised the Ministry of Transport of the Czech Republic.

The CMS team included Partner Lukas Janicek and Senior Associates Lenka Krutakova and Michal Samek.

The Kinstellar team included Partner Kamil Blazek and Counsels Jan Lehky and Michal Forytek.

The White & Case team included Partners Vit Stehlik and Peter Hodal, Local Partner David Wilhelm, and Associates Renata Ryglova and Jan Voborsky as well as further team members in London.

White & Case has advised the Rohlik Group on securing a guaranteed loan of up to EUR 90 million from the European Investment Bank as part of the EIB’s Scale-Up initiative.

Rohlik is an online food delivery service operating in the Czech Republic, Germany, Hungary, Austria, and Romania. According to White & Case, the funding will enable Rohlik to further automate its distribution centers, enhance customer experience, improve operational efficiency, and facilitate expansion into additional European markets.

The White & Case team included Prague-based Partner Petr Hudec, Counsel Petr Smerkl, and Associate Josef Levy with further team members in Berlin, Hamburg, and Luxembourg.

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

Havel & Partners has promoted Robert Porubsky, Petr Tusakovsky, and Martin Vlk to its partnership in the firm’s most recent promotion round.

Former Counsel Porubsky focuses primarily on energy and M&A. He has been with Havel & Partners since 2018 when he joined as a Managing Associate, before he was promoted to Counsel in 2022. Earlier, he was with BPV Braun Partners as a Senior Associate between 2008 and 2015.

Tusakovsky, who is also the Tax Director of Havel & Partners, has been with the firm since 2023. Earlier, he spent 15 years with Deloitte between 2008 and 2023, first as a Manager, then as a Senior Manager as of 2014, and as a Director as of 2019.

Former Counsel Vlk’s primary focus is real estate, M&A, and contract law. He has been with the firm since 2021 when he joined as Counsel. Earlier, he was with JSK as a Senior Associate between 2020 and 2021, as well as with Deloitte Legal as a Managing Associate in 2017 and a Senior Managing Associate between 2017 and 2020. Earlier still, he worked for CMS – first with the firm’s Czech Republic office between 2008 and 2011 as a Legal Assistant and an Associate and then with the UK office as a Trainee Solicitor and an Associate between 2014 and 2017. He also worked for the European Court of Human Rights as a Lawyer between 2013 and 2014.

“Last year was a major success across the board,” says Managing Partner Jaroslav Havel. “In the new year, we want to continue these positive trends, which also applies to our internal talent development strategy. We have therefore brought three new partners into the company’s top management – top professionals who have long demonstrated exceptional contributions to their teams and bolster the competitiveness of our firm.”

Reals has advised Redside on the sale of its Nova Real Estate Fund portfolio, comprising 16 retail and office properties in the Czech Republic, to Ceskomoravska Nemovitostni and Nemo Fund. Clifford Chance advised the buyers.

Redside is an investment company managing client assets worth EUR 500 million.

Ceskomoravska Nemovitostni is a real estate group specialized in long-term investments in commercial real estate. Nemo Fund is CMN’s specialized fund that invests in premium office spaces.

According to Reals, the portfolio, valued at approximately CZK 5 billion, represents one of the largest real estate transactions in the Czech market this year.

In 2023, Reals advised on Redside’s sale of the Baumax DIY store (as reported by CEE Legal Matters on April 20, 2023).

The Reals team included Partners Miroslav Dudek and Gabriela Spak Porupkova and Attorney at Law Filip Balousek.

The Clifford Chance team included Partner Emil Holub, Counsels Milan Rakosnik, Tomas Brozek, and Jan Dobry, Senior Associate Josef Lysonek, and Associate Tomas Kubala.

Havel & Partners, working with Milbank, has advised Capiton on the sale of Gritec to the Viessmann Generations Group. Rowan Legal advised the Viessmann Generations Group. Frankfurt-based Schalast and the Nuernberg office of Roedl & Partner reportedly advised the Viessmann Generations Group as well.

Capiton is a German private equity fund.

Gritec operates in the Czech market and specializes in the development and production of turnkey technical buildings and stations for energy, water & industrial infrastructure.

The Havel & Partners team included Partner Marek Losan, Counsel Natalija Traurigova, and Managing Associate Vladimir Ivanov.

The Rowan Legal team included Partner Martin Subrt and Junior Lawyer Sara Bartlova.

Rowan Legal has advised AMiT on its acquisition of the Bustec Group. Act Legal reportedly advised the sellers.

AMiT is a portfolio company of Central Europe Industry Partners.

Bustec Group specializes in the development, production, and supply of solutions for public transport.

The Rowan Legal team included Partners Vladimir Hejduk and Jan Frey, Head of Tax Ludek Vacik, and Junior Lawyer Veronika Vicari.

Havel & Partners has advised selling shareholders of Brno-based HIWIN Petr Jasek and Matis on a change in the company’s ownership structure, resulting in the German group HIWIN GmbH becoming the sole shareholder. OHBS reportedly advised HIWIN GmbH.

HIWIN, headquartered in Brno, is the exclusive supplier of HIWIN-brand linear products and positioning systems in the Czech Republic, Slovakia, and Bulgaria. Its products serve a range of applications in handling equipment, special-purpose machines, CNC tools and machining centers, general machinery, and electronics manufacturing.

Czech Republic-based Matis operates in the production and supply of components for mechanical engineering.

The Havel & Partners team included Partner Marek Losan and Managing Associate Ivo Skolil.

White & Case has advised on Dr. Max’s second retail domestic bond issuance valued at CZK 1.25 billion, guaranteed by Glebi Holdings, and listed on the Prague Stock Exchange.

Ceska Sporitelna, Komercni Banka, and UniCredit Bank Czech Republic and Slovakia were the arrangers and joint lead managers and Privatbanka acted as manager. 

Dr. Max is fully owned by Penta Investments, an investment group active in the healthcare sector.

According to White & Case, the issuance follows Dr. Max’s debut CZK 5 billion bond issuance in 2023. In total, Dr. Max has now issued bonds worth approximately EUR 250 million. The proceeds will fund the chain’s further development and expansion abroad.

The White & Case team included Partner Petr Hudec, Counsel Petr Smerkl, and Associates Jan Vacula and Josef Levy.

A set of two measures aimed at reducing state subsidies for renewable energy sources has been approved by the lower house of Parliament in the Czech Republic on 11 December 2024. These changes, proposed through amendments to the Act on Promoted Sources (the “RES Act”) and the Energy Act, specifically target solar power plants with a capacity of more than 30 kW that were connected in 2009 and 2010.

The new measures will focus on controlling subsidies by introducing individual checks on profitability (internal rate of return or IRR). Support will be reduced or withdrawn if the allowed profitability thresholds are exceeded.

The amendments also redefine the calculation of IRR to include the entire project lifetime, rather than being limited to the subsidised period. Finally, transactions with related entities that are not conducted on an arm’s-length basis will be re-evaluated as if they were.

The planned effective date for these measures is 1 January 2025.

Operators of renewable energy installations will still be required to conduct self-assessments and report their figures to the market operator. The Ministry of Trade is expected to issue a decree outlining the reporting process, but as the RES Act amendments are not yet fully approved, this decree has not been published. It remains unclear whether the existing decree (No. 72/2022, Coll.) will be amended or replaced for this purpose.

Tax authorities will also play a role by providing the State Energy Inspection with information on related-party transactions, financial flows and other conditions relevant to IRR compliance checks.

EU context

The European Commission’s State Aid decisions, particularly State Aid SA.40171 (2015/NN) and State Aid SA.35177 (2014/NN), have established the framework for legitimate expectations regarding renewable energy subsidies. These decisions emphasise that national regulations must align with EU-level state aid rules, providing critical context for the proposed amendments. These decisions are essential for shaping the legitimate expectations of receivers of state aid. The European Commission serves as the competent authority for establishing the framework for state aid in the renewable energy sector. National regulations merely implement the rules set forth by the European Commission.

Rise to claims by solar investors expected

The Czech Solar Association, the largest professional organisation in this field, has strongly criticised these measures, warning of potential legal disputes under international agreements such as the Energy Charter Treaty (ECT) and the Switzerland–Czech Bilateral Investment Treaty (BIT). Similar issues arose during the financial crisis when the Czech Republic introduced a solar levy, leading to over 50 lawsuits, a constitutional complaint and seven international arbitration cases.

The Czech Republic successfully defended most of these claims. Marie Talašová, a counsel in our energy practice team, oversaw the State’s defence in her capacity at the time as Head of the International Legal Services Department of the Ministry of Finance. After leaving the Ministry, she acted as an attorney for the Czech Modern Energy Union, advising on related issues, particularly with regard to legislation implementing conditions set forth by the EU.

What comes next?

The legislative process for these amendments continues. After passing the lower chamber, the draft law is sent to the Senate. If the Senate approves it or takes no action within 30 days, the draft will move to the President for signature. If the Senate rejects or amends the draft, it will be returned to the lower chamber for further discussion. The President has the authority to return the draft within 15 days with reasons for veto, but if no objections are raised, the law will be published in the Collection of Laws and become effective.

An expert team of dedicated energy lawyers from Wolf Theiss is closely monitoring these alterations as solar companies with investments in the Czech Republic are on alert over the subsidy cuts.

By Robert David, Partner, Marie Talasova, Counsel, and Barbora Malimankova, Senior Associate, Wolf Theiss

Wolf Theiss has advised Strabag Property and Facility Services on its acquisition of B2 Assets from Dusan Bocek. Dolezal & Partners advised the seller.

Strabag is an Austrian property services company and a provider of building solutions, managing real estate and property assets including offices, industrial sites, plants, technology buildings, data centers, and residential properties. 

B2 Assets is a Czech Republic-based building management company. It manages a portfolio of approximately 1.4 million square meters.

The Wolf Theiss team included Counsels Tomas Kren, Kamila Seberova, and Ondrej Benes, Senior Associates Barbora Malimankova and Katerina Mikulova, and Associate Nikola Hnojilova.

The Dolezal & Partners team included Partners Eva Mayerova and Martin Winter.