Page 11 - BNE_magazine_02_2020

bne February 2020 Companies & Markets I 11
would make the operation of lignite power plants running beyond 2021 in Europe deeply unprofitable.
Matrai Eromu booked a HUF817mn (€2.5mn) loss in 2018 down from HUF9bn in 2017, but without low carbon prices, losses would have been far greater. Despite the losses, shareholders approved paying dividends from the reserves in the spring.
The company’s future is also in danger as a result of tighter rules on carbon-powered plants in the EU, hence the sale by Meszaros to the state came at the right time.
Speaking to business daily Vilaggazdasag on the day the agreement was signed, CEO Miklos Gal said Opus decided to amend its strategy and rechannel capital accordingly in the light of new openings in energy trade and distribution during the year.
After the sale of Matrai Eromu, Opus is planning to invest
heavily in the energy sector targeting trading companies and renewables. Matrai Eromu has expanded its business to renewables.
In 2018 it inaugurated a 22.6MW capacity solar park from
a HUF5.4bn investment. State-owned MVM has also invested heavily in solar energy with the aim of becoming the largest producer in the country.
In November, the BSE-listed firm acquired regional electricity distributor Titasz from E.On. Gal said Opus is planning to exploit synergies from the sale with plans to expand in the region, he said, naming Romania, Bulgaria, Serbia, Croatia, and possibly Slovakia as potential targets.
Opus is optimising its stakes outside its four strategic divisions and is planning to reduce ownership in other BSE-listed companies below 10%. Opus' business interests includes property company Appeninn and insurer CIG Pannonia.
Czech firearms producer Ceska Zbrojovka plans IPO to fund US expansion
Nelly Tomcikova in Prague
Czech firearms company Ceska Zbrojovka Group SE is considering an IPO on the Prague Stock Exchange to finance an expansion in the United States, the company said in its press release on January 6. However, no firm decision has been made yet, the company said.
In 2019, the company announced its intention to build a new factory in Little Rock, Arkansas, United States. The company should produce two hundred thousand pieces annually and employ up to 560 people.
“However controversial the production of weapons is, and many institutional and private stakeholders will not touch such shares, it can be expected that in the Czech Republic this will be a highly demanded issue, because in Prague there is a huge hunger for it,” commented Capitalinked.com Analyst Radim Dohnal.
Ceska Zbrojovka, also known as by its initials CZUB, is one of the leading European producers of firearms and tactical accessories for military and law enforcement, personal defence, hunting, sport shooting and other civilian use, including also companies such as Ceska Zbrojovka CZ-USA, Zbrojovka Brno, 4M Systems and CZ Export.
The company’s most famous gun is the CZ 75 semi-automatic pistol, which enjoys world wide renown and is the most common hand gun in Czechia.
“However controversial the production of weapons is it can be expected that in the Czech Republic this will be a highly demanded issue”
Czech gun-maker Ceska Zbrojovka (CZUB) mulls an IPO to fund a US expansion. Its most famous pistol is the CZ 75
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