Page 28 - bne_Magazine_July_2017

28 I Cover story bne July 2017
Jaroslav Tvrdik (third from left) is chairman of the club and head of CEFC's local office.
as China continues its push into Central and Eastern Europe. A long time Slavia fan, Tvrdik has become chairman of
the club, as well as head of CEFC’s
local unit, set up as a European HQ.
Such a central role stems from his links to the controversial Zeman. The president is also commonly accom- panied on trips to China by oligarchs
CEFC clearly wasn’t drawn to visit
the country because it loves beer
and football. Banking, and especially energy, have powered the company’s rapid rise, and remain its prime interests. Speculated to be close to the Chinese military or secret services, CEFC is said to be seeking to buy its first refinery at home as part of a drive to to become a second Sinopec.
Meanwhile, for Beijing the biggest prize is nuclear. Chinese companies are reported to be extremely keen to play a leading role in Czech plans to build €11bn worth of new reactors over the coming decades. CEFC has no nuclear experience, but cynical voices in Czech banking circles claim the name of the company doesn’t matter
– if they’re Chinese, then Beijing is the ultimate power in the background.
"We are not here to grab the market and its resources. Instead, we come to make friends and seek mutual benefits and joint development," says Ye Jian- ming. The investment in Slavia “not only built credibility for CEFC China, it also gave additional credibility to other Chinese companies operating in the Czech Republic,” the company claims.
“Maybe this will set up a model of mar- ket entry,” suggests Pehe. “The Czech Republic is very dependent on foreign investment, and this could be copied.”
However, aside from the title-winning football club – CEFC is very happy with the PR gained, one source inside the club claims – the Chinese are less thrilled with the rest of the invest- ments announced in 2015. Indeed, several are yet to be finalised.
“It’s a propaganda tool, or a way to establish funding in the Czech Republic”
such as Petr Kellner – the richest Czech, who has a sizeable consumer finance business in China – and closely- held Slovak/Czech group J&T.
The push from Prague Castle for
yuan has caused no little fuss at home. During his campaign, the loose cannon president has found himself at the centre of unsavoury events involving the Dalai Lama or assaults by ethnic Chinese on protesters with Tibetan flags as Chinese President Jinping Xi visited the Czech capital.
A follow up toadying letter signed by several senior Czech political figures provoked a storm of protest, amongst Prague liberals at least. However, the approach is unlikely to change anytime soon; the Chinese plan is at an early stage yet.
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European service stations and oilfields in Africa and the Middle East have also been snapped up in recent months.
In the Central & Eastern European region, the major buy is not in the Czech Republic, but Romania, where CEFC has agreed to buy control
of the country’s biggest refinery Petromidia from KazMunaiGas.
In Central Europe, the company continues to try to acquire assets in the financial sector. It could also soon control 24% of the Czech refining sector via J&T Financial Group’s stake in Unipetrol.
“I doubt anyone will ever know who they bought it from”