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May 21, 2018 12:00 am | FILED UNDER: business

J&T Takes Over CEFC Europe’s Subsidiaries

By ČTK Milos Zeman Ye Jianming

Prague, May 21 (CTK) – Czech-Slovak group J&T has taken control of some CEFC Europe’s subsidiaries, including the Florentinum administrative complex project, Mandarin Oriental hotel, building of former Zivnobanka bank in Prague’s centre, and traditional Chinese medicine fund, Hospodarske noviny (HN) business daily wrote today.

 

On Thursday, J&T dismissed CEFC Europe’s board and appointed a crisis management because China’s state-run company CITIC Group failed to settle the EUR450m (Kc11.5bn) debt CEFC China Energy owed to J&T.

 

J&T’s Dusan Palcr and Peter Kubik are the new board members of CEFC Europe.

 

Palcr, the supervisory board chairman of Sparta Praha football club, took control of CEFC Europe on Thursday. He appointed himself to the board of Stadion Eden, a company operating Prague’s Eden stadium, making no change to the company nor Slavia football club.

 

CITIC Group holds 49 percent in CEFC Europe.

 

J&T said earlier it would negotiate with CITIC, which it considers a trustworthy and transparent partner.

 

CITIC’s negotiation team is in Prague and the talks continue, HN said.

 

J&T co-owner Patrik Tkac tweeted on Friday that his group was ready to immediately accept CITIC Group’s payment settling CEFC Europe’s debt to the group, and to give control over CEFC Europe back to its Chinese owner.

 

HN said the issue was in paying off the debt in accordance with contracts and in a way that it is not attacked in the future.

 

CEFC Europe’s former board deputy chairman Jaroslav Tvrdik tweeted on Friday evening that J&T’s step was what prevented the debt from being settled.

 

Last week, Czech President Milos Zeman appointed Tvrdik to prepare meeting of Chinese-Czech centre of cooperation in China’s city Yiwu, September’s investment forum in Prague, and Zeman’s visit to Shanghai in November, Lidove noviny (LN) daily said.

 

Information about CEFC’s financial problems emerged following reports that CEFC group head Ye Jianming, an adviser to Zeman, was investigated for suspected economic crimes.

 

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