PRAGUE: China's state-run CITIC Group will buy out the debt owed by the European unit of Chinese private energy group CEFC from Prague-based investment group J&T to end a week-long dispute, J&T said on Friday.
The 450-million-euro ($530-million) debt problem saw J&T appoint crisis managers at CEFC Europe last week, in a move that parent company CEFC China Energy dubbed a hostile takeover.
CITIC, which owns 49 percent of CEFC Europe, "will buy all claims on the CEFC group from J&T" through its unit Rainbow Wisdom, the Czech-Slovak group said on its website.
"The crisis managers appointed by J&T will be recalled," it added.
China's seventh-largest private company CEFC has invested some 1.5 billion euros in the Czech Republic where it employs more than 4,000 people.
It owns shares in the Travel Service airline, two travel agencies and the Lobkowicz Group of breweries, as well as hotels in Prague, the Slavia Prague top-flight football club and office buildings in central Prague.
It made headlines earlier this year when oil tycoon Ye Jianming quit CEFC, facing a police investigation in China over an undisclosed crime.
Ye was an adviser to pro-Chinese, pro-Russian Czech President Milos Zeman, who champions Chinese investment in his country.
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