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July 30, 2018 12:00 am | FILED UNDER: business

Cesky Aeroholding And Letiste Praha Merger Delayed

By ČTK

Prague, July 30 (CTK) – The planned merger of Cesky Aeroholding with Letiste Praha should be completed only in the autumn, the Finance Ministry plans its entry in the Register of Companies to be made on October 1 but the date may still be postponed, the ministry’s spokesman Filip Behal told CTK today.

 

The ministry originally planned August 1 as the date when Letiste Praha will be entered in the Register of Companies as the successor company.

 

“This was only a working date. The planned date for filing the proposal for the merger’s entry in the Register of Companies is now October 1, 2018 with respect to the extent of the process,” Behal said, adding that even this does not have to be the final date.

 

“By law, there is time to submit the proposal for the merger’s entry in the Register of Companies until the end of 2018,” he added.

 

Despite the change in the date, the result of the merger should not be endangered, the ministry said.

 

The management of Letiste Praha, which is in charge of the Prague airport’s operation, agrees. Its board chairman Vaclav Rehor said that the merger has been prepared for over two years and all the processes and organisation structures have already been set for the target situation after the merger.

 

“We see the completion of the preparations as a positive step which will help us remove administrative burden linked with the operation of more separate companies,” Rehor said.

 

Letiste Praha and Cesky Aeroholding will merge, Letiste Praha will become the successor firm and Cesky Aeroholding will cease to exist.

 

Letiste Praha has been a key asset of Cesky Aeroholding, being in charge of the Prague airport’s operation. Cesky Aeroholding has been the owner of the airport infrastructure.

 

The composition of the companies’ boards of directors was similar, their chairman being Vaclav Rehor. Cesky Aeroholding’s supervisory board was led by economist Jan Svejnar. Its activities will end officially.

 

Cesky Aeroholding was a majority shareholder of national air carrier Czech Airlines (CSA) which it saved from bankruptcy.

 

After the last stake in CSA was sold to another state-run company Prisko in 2016, the separation of Cesky Aeroholding from Letiste Praha was no longer needed.

 

Cesky Aeroholding was set up in 2011. Apart from Letiste Praha, it comprises Czech Airlines Technics, Czech Airlines Handling and other companies.