ENERGETICKÝ A PRŮMYSLOVÝ HOLDING SETS UP ITS OWNERSHIP STRUCTURE AND LAUNCHES OPERATIONS

15. 10. 2009

Today, ENERGETICKÝ A PRŮMYSLOVÝ HOLDING a.s. finalised its shareholder structure and launched its operations. Both PPF Group and Daniel Křetínský completed their entry into the company. The company holds energy and industrial assets demerged from J&T Group.

Through its PPF Partners private equity vehicle, PPF Group acquired 40% of the shares in ENERGETICKÝ A PRŮMYSLOVÝ HOLDING, J&T holds a 40% stake in the company through its private equity structures, and the remaining 20% of the shares are held by Daniel Křetínský, who is no longer a partner in J&T Group.

„Entering into ENERGETICKÝ A PRŮMYSLOVÝ HOLDING is another step forward for PPF Group in its strategy to diversify investments. We want to leverage our position in the group to apply our capital strength and know-how in the region. ENERGETICKÝ A PRŮMYSLOVÝ HOLDING is one of the largest independent energy companies in the Czech Republic and as such offers a realistic platform for further growth, both through acquisitions and green field projects. We believe that together with the management of the group, we will successfully tap into this potential to create additional value,“ said Ladislav Bartoníček, a PPF Group shareholder.

„The first months of our co-operation with PPF have already vindicated our plan to create an independent holding company for the energy sector and industry and offer entry into it to a major investor,“ said Patrik Tkáč of J&T. „Inviting PPF to join the holding company soon started to pay off, specifically in allowing the holding company to take maximum advantage of the unique acquisition opportunities offered by the current global economic situation. I am convinced that ENERGETICKÝ A PRŮMYSLOVÝ HOLDING has all the prerequisites for at least sustaining its current rate of growth,“ added Mr Tkáč.

„ENERGETICKÝ A PRŮMYSLOVÝ HOLDING will continue to strengthen its position as a strategic investor in the energy sector. At the same time we want to maintain our position as a major investor in industry,“ explained Daniel Křetínský, Chairman of the Board of Directors of ENERGETICKÝ A PRŮMYSLOVÝ HOLDING.

„Our further development in the energy sector will primarily be based on grasping the acquisition opportunities that exist on the market. In addition, however, we are also working intensively on developing new energy capacities,“ he emphasised. „Outside the energy sector, in industry we also plan to buy into new enterprises on a selective basis,“ added Mr Křetínský.

The managerial team led by Daniel Křetínský, which represented J&T’s corporate investments in the Czech Republic, is moving over to ENERGETICKÝ A PRŮMYSLOVÝ HOLDING and will be responsible for its management. Mr Křetínský’s scope of authority will also include the appointment of the members of the Board of Directors of ENERGETICKÝ A PRŮMYSLOVÝ HOLDING. However, significant competences will be held by the Supervisory Board of ENERGETICKÝ A PRŮMYSLOVÝ HOLDING. Amongst other things, it will approve acquisitions and divestments of ownership interests. Jiří Šmejc, Ladislav Bartoníček and Robert Ševela will represent PPF on the Supervisory Board. Ivan Jakabovič, Martin Fedor and Miloš Badida will be on the holding company’s Supervisory Board on behalf of J&T structures.

The ENERGETICKÝ A PRŮMYSLOVÝ HOLDING group includes over 20 companies operating in electricity and heat production, electricity trading, manufacture of boilers and turbines for power generation, electricity installation services and additional related fields. The group also includes a bus manufacturer and food industry companies.

It is expected that in the future the group will be expanded to include, amongst others, MIBRAG, a German coal mining company, International Power Opatovice, and Elektrizace železnic Praha.

The group companies‘ total consolidated EBITDA exceeded CZK 4.3 billion in 2008. The group companies currently employ approximately 6,000 people and in 2008 generated combined revenues of more than CZK 30 billion. The group, which currently has generating plants with a total installed capacity of 330 MWe, is on track to successfully meet its target of increasing its plants‘ total installed capacity to approximately 1,000 MWe by 2012.