Czech Republic
M&A Report 2010
http://www.securities.com/dw
Table of Contents
1. Overview............................................................................................ 3
2. Top 10 Deals by Deal Value............................................................... 5
3. Deals by Sectors ............................................................................... 6
4. Deals by Country of Investors ............................................................ 7
5. League Tables for Financial Advisors.................................................. 8
6. League Tables for Legal Advisors....................................................... 9
7. Notes and Disclaimer.......................................................................... 10
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1. Overview
Deals by Value and Volume in Czech Republic
(2007-2010)
The M&A market in the Czech Republic continued on a
downward trend, with 2010 registering the lowest
numbers in the past four years both in terms of volume
and value of transactions. A total number of 167 deals
involving Czech targets were announced or closed during
the year, down from 170 in 2009.
250
200
10,000
8,685
188
204
6,580
8,000
170
167
150
In the absence of very large transactions, the total value
of deals dropped by 40% to approximately EUR 2 billion
from EUR 3.4 billion in 2009.
6,000
3,431
100
4,000
2,050
50
In terms of deal numbers, Manufacturing was the most
attractive sector in 2010 with 41 deals. In terms of total
deal value, Telecommunications & IT was the leader with
a total deal value of EUR 592 million, while Manufacturing
came second with EUR 468 million.
2,000
0
0
2007
2008
Number of deals
2009
2010
Total value of deals (EUR million)
The largest deal in 2010 was the sale of broadcasting and telecommunications provider České Radiokomunikace by
Mid Europa Partners to Australian Macquarie Group for EUR 574 million. Other significant transactions were the
acquisition of a 50% stake in lignite mining company Czech Coal by Czech investor Pavel Tykac for EUR 409 million
and the sale of steelworks company Pilsen Steel to Russia's United Pilsen for EUR 126 million.
Advisors expect the market to grow in 2011, primarily in the banking, pharmaceuticals and energy sectors. The market
is expected to be driven mostly by restructuring deals - multinationals and other conglomerates selling off non-core
businesses. Valuation multiples are also expected to rise again.
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1. Overview (continued)
The M&A market in Czech Republic shows signs of
recovery, but 2011 is expected to continue to be difficult
due to existing obstacles in bringing transactions to
successful closing. One of the drawbacks for M&A is still
represented by the increasing price expectations of the
sellers. At the same time, the banks' willingness to finance
takeovers is unlikely to grow, which will limit the number of
very large transactions.
The number of privatization deals in 2010 was
insignificant, with just two transactions being closed. The
state is expected to continue playing a limited role on the
M&A market, although there are chances for a few sell-off
tenders towards the end of 2011 and in 2012.
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2. Top 10 Deals by Deal Value
in Czech Republic
Top 10 Deals by Deal Value in Czech Republic (2010)
Target Company
Industry
Deal Type
Buyer
Country of
Buyer
České Radiokomunikace
Telecommunications & IT
Acquisition (100%)
Macquarie Group Limited
Australia
574
Czech Coal
Mining (incl. oil & gas)
Acquisition (50%)
Indoverse Czech Coal Investments
Cyprus
409
Pilsen Steel
Manufacturing
Acquisition (100%)
United Pilsen
Russia
126
InterContinental Prague
Services
Acquisition (100%)
Westmont Hospitality
United States
111
Biocel Paskov
Manufacturing
Acquisition (75%)
Lenzing
Austria
88
Avast
Services
Minority stake purchase
Summit Partners
79
Fortuna Entertainment Group
Media & Entertainment
IPO (35%)
United States
Czech
Republic;
Poland
Arcelor Mittal Ostrava
Manufacturing
Minority stake purchase (3.6%)
Arcelor Mittal
Luxembourg
68
Zentiva
IGY shopping centre in Ceske
Budejovice
Manufacturing
Minority stake purchase (3.2%)
Sanofi-Aventis
France
55
Wholesale & Retail Trade
Acquisition (100%)
Czech Property Investments
Czech Republic
49
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Deal Value
(EUR m illion)
78
3. Deals by Sectors
Number of Deals by Sectors in
Czech Republic (2010)
Education &
Healthcare
3
Transportation
& Warehousing
6
Finance &
Insurance
3
Construction
6
Food &
Beverages
11
Media &
Entertainment
13
Share of Sectors from Total Value of Deals
in Czech Republic (2010)
Media &
Entertainment
4.2%
Mining (incl. oil
& gas)
2
Finance &
Insurance
2.8%
Construction
0.6%
Utilities
0.5%
Wholesale &
Retail Trade
5.9%
Telecom & IT
28.9%
Manufacturing
41
Telecom & IT
14
Services
13.4%
Services
30
Mining (incl. oil
& gas)
20.0%
Utilities
Wholesale &
17
Retail Trade
21
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Manufacturing
22.8%
Food &
Beverages
0.4%
4. Deals by Country of Investors
Share of Cross-border Deals
from Total Number of Deals (2010)
Cross-border Deals by Country of Investors (2010)
Rank Country
Cross-border
44%
Domestic
56%
Share of Cross-border Deals
from Total Deal Value (2010)
Domestic
14%
Cross-border
86%
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Deal Value Number of
(EUR m illion)
Deals
1
1 Australia
574
2 Cyprus
409
2
3 United States
199
11
4 Austria
158
8
5 Russia
143
5
6 Luxembourg
68
1
7 France
55
3
8 Poland
15
5
9 United Kingdom
10
3
10 Slovakia
8
5
11 Egypt
8
1
12 Sweden
5
5
13 India
3
2
14 Netherlands
1
2
15 Denmark
n.a.
1
16 Finland
n.a.
1
17 Germany
n.a.
5
18 Gibraltar
n.a.
1
19 Norway
n.a.
2
20 Portugal
n.a.
1
21 Spain
n.a.
2
22 Switzerland
n.a.
4
5. League Tables for Financial Advisors
Top 10 Financial Advisors by Deal Value
Rank Company
1 Goldman Sachs
Top 10 Financial Advisors by Number of Deals
Deal Value Number of
(EUR m illion)
Deals
Rank Company
Deal Value Number of
(EUR m illion)
Deals
574
1
1 Patria Finance
153
15
2 Deloitte
3 3 Seas Capital Partners
409
8
2 Deloitte
409
8
308
1
3 PricewaterhouseCoopers
138
3
4 Patria Finance
5 PricewaterhouseCoopers
153
15
4 Corpin Partners
14
3
138
3
5 KPMG
22
2
6 Lazard
7 Copernicus Securities
57
1
6 Tacoma
2
2
50
1
7 CN Finance
1
2
7 Robert W. Baird & Co.
9 Smith & Williamson
10 KPMG
50
1
8 Corsum Group
n.a.
2
28
22
1
8 goetzpartners
n.a.
2
2
10 Goldman Sachs
574
1
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6. League Tables for Legal Advisors
Top 10 Legal Advisors by Deal Value
Rank Company
1 White & Case LLP
Top 10 Legal Advisors by Number of Deals
Deal Value Number of
(EUR m illion)
Deals
Rank Company
Deal Value Number of
(EUR m illion)
Deals
656
5
1 Havel & Holasek
277
28
2 CMS Group
3 Elig Ortak Avukat Burosu
644
5
2 Weinhold Legal
123
8
308
1
3 White & Case LLP
656
5
3 Esin Law Firm
5 Havel & Holasek
308
1
4 CMS Group
644
5
277
28
5 Baker & McKenzie
28
5
6 Weinhold Legal
7 Clifford Chance LLP
123
8
6 e|n|w|c
26
4
89
2
7 Weil, Gotshal & Manges LLP
75
3
75
3
8 Clifford Chance LLP
89
2
75
1
12
2
57
1
9 Vejmelka Wunsch
10 Kinstellar SCA
51
2
57
1
10 Linklaters
51
2
8 Weil, Gotshal & Manges LLP
9 Binder Grösswang
10 Doralt Seist Csoklich (DSC)
10 Schoenherr
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7. Notes and Disclaimer
Notes:
This document covers the transactions recorded in the DealWatch Database that are fitting the following criteria:.
• Geography: Target company located in Czech Republic.
• Industry: Sales of non-commercial real-estates (e.g. residential buildings) were excluded.
• Deal Status: Announced or closed.
• Deal Type: Restructuring deals within one holding (without significant change in shareholder structure) were excluded.
• Deal Size: USD 1 million or above.
• Announcement Date: 2010.
If the deal value is not reported or estimated, it is considered to be zero in calculations. Top deals are selected by announced or
estimated deal values.
League Tables data is based on DealWatch intelligence and information provided by advisors. In the League Tables we have
taken into consideration the deals fitting the criteria described above, however geography was extended for deals with either a
buyer, seller or target located in the Czech Republic.
Data collection was closed on 11 February 2011.
Contacts:
Web: http://www.securities.com/dw
E-mail: dw@securities.com
Disclaimer:
The material is based on sources which we believe are reliable, but no warranty, either expressed or implied, is provided in relation to the
accuracy or completeness of the information. The views expressed are our best judgment as of the date of issue and are subject to change
without notice. Internet Securities Inc. and Euromoney Institutional Investor PLC take no responsibility for decisions made on the basis of these
opinions.
Any redistribution of this information is strictly prohibited. Copyright © 2011 Internet Securities, Inc.(trading as ISI Emerging Markets), all rights
reserved. A Euromoney Institutional Investor company.
Picture on Page 4 by: Horia Varlan.
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