České dráhy bought the remaining 29 percent stake in the telecommunications company ČD-Telematika from the PPF investment group. Both companies today definitively confirmed the transaction by signing a purchase agreement. The railways have thus become the sole shareholder of the company, the state carrier said today. The value of the transaction was not stated by the company, according to it it is based on expert opinions.
The railways have so far owned almost 71 percent of the shares in ČD-Telematika, the remaining 29 percent has been held by PPF since 2018. “ČD-Telematika is a strategic company from the point of view of Czech Railways and the state,” the company said today. The acquisition has previously been approved by the Board of Directors, the Supervisory Board, and the Management Board of Czech Railways.
“The share price was verified by two independent reviews,” the tracks said today about the price without specifying it. Server Seznam Zprávy previously stated that the repurchase may cost 850 million crowns. According to the server, about seven years ago, the railways received an offer for the same share from approximately 198 million crowns. At that time, however, the railways eventually rejected the acquisition.
ČD-Telematika offers ICT services to state and private organizations, especially the internet, data, and telecommunication services. The company also operates in transport, where it cooperates with Czech Railways on equipping trains with safety technologies. The company employs over 500 people, last year it recorded a profit before tax of 66.9 million crowns, which is 6.6 million less year on year. Companies and revenues fell by about 20 million to 1.67 billion crowns.
Czech Railways decided on the transaction despite the current traffic losses. Last year, due to the coronavirus pandemic, they made a loss of CZK 4.1 billion.