White & Case and Brzobohatý Brož & Honsa Advise on the Largest-ever M&A Deal in the Czech Republic
Prague / London
July 24, 2007 ... White & Case and Czech law firm Brzobohatý Brož & Honsa ("BBH") are advising PPF Group N.V. ("PPF") in the creation of one of Central and Eastern Europe's largest insurers through a joint venture with Italian insurance blue chip Generali Group ("Generali"), which was signed in Milan on Tuesday, 10th July. The deal, which will transfer the Central and Eastern European insurance assets of both groups to a new joint venture company, is believed to be the largest-ever M&A transaction involving the Czech Republic. Completion of the transaction is expected in the second half of 2007 and is subject to approval by the relevant regulatory and antitrust authorities.
The joint venture will create one of the leading insurance businesses in the region, with premium income of €2.6 billion and more than nine million clients. PPF contributed its subsidiary Česká pojišťovna, a.s., the leading Czech insurance company valued for the purpose of this transaction at €3.6 billion, to the new joint venture company. The move represents an important step for both PPF and Generali in expanding their insurance business in one of the fastest growing regions of Europe.
"It has been a pleasure, challenge, and honour to work on this magnum calibre transaction, which is without precedent in CEE. The combination of the dynamic PPF Group and the bluest of Italian blue chips, Generali, is a new landmark for transactions in this part of the world, and shows that business opportunities continue to improve dramatically every year. The market has waited a long time to see what would happen with PPF's Czech Insurance Company, but the result is likely to impress even the toughest Czech critic," commented White & Case partner Michal Dlouhý.
The White & Case team advising PPF Group was led by partner Michal Dlouhý in Prague, working closely with Damian Beaven, Michal Smrek, Robert Vydra and Tomáš Hlaváček in Prague, Andrew O'Keeffe in London, and Mark Powell and Krzysztof Kuik in Brussels.
Tomáš Otruba, the BBH partner responsible for the deal, commented: "The success of our clients is the only thing that counts for us. It was a considerable undertaking as structuring counsel and we were pleased to coordinate the varied international legal services in the production of such a world class joint venture. This is emblematic of how business in this part of the world has become cross-border in nature and innovative in character. I am proud that our long-standing work for PPF Group has culminated in such a highly successful transaction."
Tomáš Otruba led the BBH team structuring this transaction which was comprised of Peter Mlejnek, Andrea Siráková, Tomáš Sedláček in Prague and Peter Malovec of the BBH Bratislava office.
PPF is the Czech Republic's largest financial group controlled by Petr Kellner, a Czech entrepreneur with a strong track record of success. Generali is Europe's third-largest insurer, as well as Italy's market leader, and is active in insurance and asset management in 10 Central and Eastern European countries.
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