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PPF Partners invests in leading Czech energy group

PPF Partners has acquired a 40% stake in Energy and Industrial Holding (EP Holding) for an undisclosed sum. EP Holding is a new group of energy and industrial companies spun off from Czech investment firm J&T Group.

The shareholding structure of the newly formed EP Holding has also been finalised today with J&T Group also participating in 40% through its private equity structures and the remaining 20% owned by Daniel Kretinsky, a former J&T Group partner, who is now fully responsible for the management of EP Holding.

EP Holding consists of more than 20 companies involved in energy power generation, heating, electricity distribution, wind and solar power plants, energy trading, the production of generation boilers and turbines, electric installation and other related areas. EP Holding aims to expand its interests through acquisitions and Greenfield development.

The total EBITDA for the companies owned by EP Holding exceeded CZK4.3 billion (EUR166 million) in 2008 and revenues in 2008 totalled CZK30 billion (EUR1.16 billion). The EP Holding companies currently employ around 6,000 people. The overall capacity of EP Holding’s energy sources is 330 MWe, with an aim to increase this capacity to 1,000 MWe by 2012.

"The acquisition of a stake in EP Holding, the leading independent energy group in the Czech Republic, represents for PPF Partners the largest and most significant investment since the launch of our first fund,” says Mel Carvill (pictured), president and chief financial officer of PPF Partners. “We believe that EP Holding offers a solid platform for further growth in the energy sector in Central and Eastern Europe and that the shareholders together with the operational management will be able to extract additional value through both new acquisitions and greenfield projects. EP Holding will also continue to look for further investments with a focus on traditional value creation opportunities."

The former J&T Corporate Investment management team, which handled J&T Group’s energy assets, has joined EP Holding. Kretinsky, EP Holding’s CEO, will appoint members of the Management Board, while the other shareholders will be represented on the Supervisory Board, which will have authority to approve new acquisitions and divestments. Ladislav Bartonicek, Jiri Smejc and Robert Sevela will represent PPF Partners on the Supervisory Board, while Ivan Jakabovic, Martin Fedor and Milos Badida will represent the J&T Group structures.

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