Daniel Kretinsky and Patrik Tkac

William Malcolm

EP Global Commerce Boosts Stake In Metro AG To 29.99%

Daniel Kretinsky

Kretinsky’s EPGC to be largest shareholder in Metro AG


Daniel Kretinsky and Patrik Tkac’s EP Global Commerce (EPGC) group increased its shares in Metro AG to 29.99 percent. As a result, they are now Metro’s largest shareholder.


EP Global Commerce exercised call option


EPGC exercised a call option to buy 44,950,974 ordinary shares in Metro AG from Haniel. EPGC said the transaction would go through on November 6, 2019. Křetínský and Tkáč’s company previously held 17.52 percent of Metro.


EPGC will seek more seats on the Board. While keeping call options to buy more ordinary shares held by Haniel.


Kretinsky and Tkac first invested in Metro in 2018


EPGC bought a stake in Metro AG in 2018 when its shares fell to record lows due to weak earnings in Russia. The once large-scale retailer restructured in recent years, focusing even more on the wholesale business. They sold Kaufhof department stores and spun consumer electronics off into Ceconomy AG.


Failed takeover bid


EPGC submitted a takeover bid to Metro AG in mid-June. At the time, they offered EUR 16 per share of the company. But, Metro management and its shareholders rejected the takeover. The bid valued the entire company at EUR 5.8 billion (roughly CZK 148 billion).


The Metro Group has over 770 Cash & Carry wholesalers in 26 countries and has more than 150,000 employees. The company has been doing business in the Czech Republic since 1997. It’s Macro Cash & Carry CZ division operates 13 wholesale centers in the Czech Republic.