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CZECH NATIONAL LOTTERY AND BETTING FIRM SOLD
Wednesday, September 28, 2011 : No smooth sailing in sale of embattled Czech firm
Submissions from three bidders for the bankrupt Czech national lottery and betting firm Sazka AS has culminated in the sale of the business this week to a joint bid from Czech financial groups PPF AS and KKCG.
Bidders for the company had to fork out a 500 million-koruna ($29.3 million) deposit while the main selection criteria rested solely on the highest price offered.
Bids were submitted from two other bidders believed to be Synot Holding and Fortuna, however, the Penta Group withdrew from the tender process claiming it wasn’t transparent.
According to a report in the Prague Post, Penta had reportedly offered 5 billion Koruna ($276 million) for the company outside of the official process and now intends challenging the decision through the courts.
Another disgruntled player in the sale process, one of Sazka’s major creditors, bank Česká spořitelna, has requested cancellation of the tender followed by a renewed bidding process due to fears of legal action against Sazka’s bankruptcy lawyer over the sale of the company’s assets.
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