Privatisation of Czech Nova Hut
Dutch group LNM revised its offer for Nova Hut (NH) and the Ostrava blast furnace operation (VPO) of which Nove Hut is a share holder, up to 25bn Czk, 7bn Czk of which is for
investments over 10 years and the offer exclusivity expires 31 May 2002.
Besides the U.S. based company Commercial Metals (CMC) and local Czech firm Trinecke Zelezarny (TZ) have jointly placed a bid of Czk 24.5bn (807mio, $736mio) on Monday May 27, for Nova Hut and VPO. Most of this amount is intended for capital investment.
CMS and TZ will have equal shares on Nova Hut. Meanwhile CMC currently holds 11% shares of TZ. The intention of the consortium is to integrate the Czech steel industry, including Vitkovice as well and form one large company based in Czech Republic.
In the meantime it is reported that LNM signed a key contract with International Finance Corporation (IFC) on May 28, to which Nova Hut owes debts.