Czech government approves the move

Published: 6/27/2000

The Czech government has given its final approval to the takeover of engine producer Walter by Czech company Tark, controlled by US company Novus Holdings under an agreement signed in October 1999. Novus Holdings is owned by US investor Robert Fessler and Irish airline owner, Tony Ryan, who were reported to be attracted to the company's extensive production facility. The company's major creditor, Czech bank Konsolidacni Banka, will acquire property from the company in exchange for writing off with the company's outstanding debts amounting to 1,453m Koruna ($36.3m). The bank will then sell its stake in the company to the US concern for 1 Koruna. The majority holding in Walter is currently held by Aero Holdings, which is majority controlled by the Czech state through the Czech state property fund and these shares will be sold to Novus. Last year, the Prague-based producer made a loss of 102.2m Korunas ($2.55m) on sales of 511.7m Koruna ($12.78m). The new owners intend to develop the producer's links with Saab and BAE Systems who have endorsed the deal.

Article ID: 1880