PKP CARGO obtained consent of the Czech anti-trust office for acquisition of 80% of shares of the Advanced World Transport. Thus, the last condition necessary to finalize the contract, under which the AWT – second largest rail freight carrier in Czech operating in Central and Southern Europe – will join the PKP CARGO Group, has been met. The transaction of a total value of EUR 103.2 million shall be completed within the upcoming weeks, upon signing of the applicable contract by the parties and payment of the agreed price by PKP CARGO.
WARSAW, 19-5-2015 — /EuropaWire/ — PKP CARGO has previously obtained consents for acquisitions issued by the anti-trust offices in Poland, Germany and Slovakia. Obtaining the one from the Czech office was the last condition necessary to complete the transaction.
Purchasing of majority share in one of the largest private carriers in Europe will enhance the strategic position of PKP CARGO in the region and in particular increase the N-S transport corridor service capacity.
Upon completion of the transaction, PKP CARGO will record a hike in the Czech market share. This is the ninth largest rail freight market in Europe and crossing of the key transport routes of the continent. Stronger position of PKP CARGO on this market translates into opportunity to win the new clients and guarantees better service of already operated freight to Czech and to the south of Europe.
The sellers of 80% of AWT shares are Mr. Zdenek Bakala and The Bakala Trust fund, owned by him. The remaining 20% of shares in the AWT shareholder structure are owned by the Czech Minezit SE company, with which the PKP CARGO entered into the shareholder agreement, regulating in details the mutual relations between the partners. The agreement of December 2014 regulates also the schedule of possible purchase of the remaining AWT shares by PKP CARGO.
The AWT Group is one of the largest private rail freight carriers in Europe and the second largest Czech carrier, with app. 10% of market share as of 2013 in terms of transport performance. In 2013, the AWT Group transported 12 million tonnes of freight, with transport performance at the level of 1.54 billion tonne-kilometres and generated revenue of EUR 282 million.
The AWT Group provides services in Czech, Slovakia, Slovenia, Hungary, Germany, Romania, Bulgaria, Poland and Croatia. With app. 2.1 thousand employees, the Group provides complex services to large industrial plants in Central and Eastern Europe. It specializes in heavy and bulk freight, including coal, steel and vehicle parts.
AWT manages well-developed rolling stock covering app. 160 locomotives and more than 5 thousand wagons (including more than 65% of own wagons).
Service portfolio of AWT is highly diversified – apart from rail freight, the Group acts as the operator of 60 sidings in Czech, owner of the company providing rolling stock services (wagon servicing and rent) and the company specializing in construction works, land rehabilitation and waste management.