PPF Investments Group Announces Series of Investments made in Second Quarter 2006; moves into Financial Services; Waste Management; Telecommunications; Industrial Services and Media Industry Sectors
Jul 31, 2006
PPF Investments Group, the independent, international private equity group, today announced that is has made a series of equity investments during its second trading quarter, ending June 30th 2006 and has invested in companies operating in the financial services; waste management; telecommunications and media industries.
The equity stakes were made by its Investment Corporation PPF Alpha Ltd and they were all acquired from the PPF Group or affiliated companies as part of the continuing restructuring process of the PPF Group. The investments comprise the following:
AB Credit and CM Credit
These companies operate non performing loans (NPL) businesses in the Czech Republic. The purchase price exceeded $100m in this case.
PPF Investments Group has identified NPL as a core element of its investment strategy. It purchased two portfolios of NPLs in China in December 2005 and January 2006 and is currently investigating other NPL acquisitions in China and Central and Eastern Europe.
AB Credit and CM Credit will become part of a new international holding company CREDIS Invest, which will focus on NPLs on an international basis. It is to be based in the Netherlands.
Prague Services (Pražské služby) and Termizo
PPF Alpha Ltd has taken a minority equity stake in Prague Services (Pražské služby), a waste management company partly owned by the Prague municipal government. It has also acquired a majority holding in Termizo, which operates one of the most modern waste burning facilities in the Czech Republic.
PPF Investments Group has identified waste management as one of several potential core holdings for its future global investment strategy.
PPF Alpha Ltd has acquired 100 per cent of the equity in Tempo Services, a chain of service stations located throughout the Czech Republic, which provide fast car maintenance services and complementary products, including car accessories.
PPF Alpha Ltd has acquired 100 per cent of the equity in Vegacom, a group of companies which provides telecommunications services in the Czech Republic and Slovakia.
PPF Alpha Ltd has acquired 100 per cent of the equity in Euronews, one of the Czech Republic’s leading publishers of business and economic titles, including the widely-read Euro magazine.
Euronews will become part of East West Media, a new international company set up to exploit opportunities within the media industry sector in Central and Eastern Europe and Asia. East West Media BV operates from the Netherlands.
Commenting on the company’s trading activity in the second quarter, Michal Susak, PPF Investments Group’s new CEO, said, “we are delighted with the progress we have made since our launch last year. During the second quarter, we have strengthened the management team; opened a new office and made several significant investments in geographies and industry sectors that we have identified as offering good returns to our investors.
We will operate as active investors in all these investments and will provide their management teams with the support and resources they require”.
We are actively pursuing numerous other investment opportunities throughout Central and Eastern Europe, including the Czech Republic; Slovakia; Romania; Bulgaria; Ukraine and Russia. We are also continuing to focus much management attention on China and Vietnam”.
PPF Investments Group has already raised over $440m in subscription funds since it launched PPF Alpha, and has identified a further $60m that will be committed.
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