2005 - 2006 - Pinsent Masons Water Yearbook 2012

CZECH REPUBLIC PART 3 (ii): COMPANY ANALYSIS: LOCAL/REGIONAL PLAYERS
Czech Republic
SmVaK (Penta Finance)
Penta Finance is part of Penta Holding, a company based in the Czech and Slovak Republics
dedicated to acquiring undervalued assets and developing them for sale to third parties or market
listings. In November 2003, an initial bid was made by Penta Finance’s Waterfall Holding BV to
acquire AWG’s (UK) 54.30% holding in Severomoravské vodovody a kanalizace Ostrava a.s.
(SmVaK). This was finalised in February 2004 for CZK 1.75 billion (£38 million). AWG acquired this
stake for £19 million in 1999. In April 2004 Penta purchased a further 44.07% interest from Suez
(France). 1.5% of the shares are held by Moravian municipalities.
Penta is basing its strategy upon the current framework business plan which is in place until 2008,
involving capital spending rising from CZK392 million in 2004 to CZK500 million by 2008. SmVaK will
further participate in financing the development of infrastructure water management contracts in cities
and municipalities in the region, including Moravia, Poland and Slovakia. In August 2005, the
company was given a Baa-short term international debt rating by CRA, the first time SmVaK has been
rated. In June 2005 the company issued CZK2 billion in bonds in order to retire earlier debts, with
CZK0.25 billion available for acquisitions in Moravia, Poland and Slovakia.
SmVaK, profit & loss account
Y/E 31/12 (Kčs million) 2000 2001 2002 2003 2004
Water supply 720.9 760.7 834.7 883.1 905.6
Wastewater treatment 410.1 448.3 480.5 501.0 522.2
Revenues 1,240.0 1,273.1 1.374.2 1,441.1 1,484.5
Net profits 173.0 178.9 192.3 355.5 218.7
EPS (Kčs) 37.5 51.7 55.6 102.8 63.4
SmVaK holds the water and sewerage management contract for the Severomoravske region,
including serving the Frýdek – Místek, Karviná, Nový Jičín, and Opava regions, along with the cities of
Ostrava, Hlučín, Studénka, and for other municipalities of Moravia and Silesia region; and under a
contract, it also supplies water to near-border areas of Poland. It owns 26 water treatment plants and
operates 60 sewage treatment plants. Currently, 1.07 million of the region’s 1.2 million inhabitants are
connected to the mains water supply and 0.87 million to the sewerage network. SmVaK is the second
largest water and wastewater entity in the Czech market.
The original 15 year concession ran from 1995. Hyder acquired 37.8% of the company in 1995.
Hyder’s stake was sold for Kčs795 million (US$26.7 million) to VE in 1999.
Contact Details
Name: Severomoravske Vodovy a Kanalizace Ostrava a.s.
Address: 28 Rinja 169, 709 45 Ostrava 1, Czech Republic
Tel: + 420 596 697 111
Fax: + 420 596 624 205
Web: www.smvak.cz
Oldrich Vagner (Chairman)
Josef Sverma (General Director)
Contact Details
Name: Penta Finance a.s.
Address: Na Příkopě 15, 110 00 Praha 1, Czech Republic
Tel: 00420 2 721 438 21
Fax: 00420 2 721 438 00
Web: www.pentainvestments.com
Dr. Marek Dospiva (Chairman)
Dr. Martin Kúšik (Director)
295 Pinsent Masons Water Yearbook 2005 – 2006