The Part of Vítkovice Machinery Group Producing Cylinders will Become a Part of Cylinders Holding
27. October 2016
OSTRAVA, 27 October 2016 - The original, independent, thriving part of Vítkovice Machinery Group (VMG) producing cylinders is creating an independent consolidation unit called Cylinders Holding a.s. and becoming separated from machinery Vítkovice, a.s. Completely autonomous Cylinders Holding, located in the Czech Republic, Poland, Croatia and Argentina, will offer its owners new opportunities to increase the value of their assets on the basis of worldwide development intentions.
All existing shareholders of Vítkovice Holding, a.s., which is the top company in the structure of VMG, will automatically receive ownership interests in Cylinders Holding, a.s. Those shareholders will receive their ownership interest in the same proportions in which they own interests in Vítkovice Holding - Jan Světlík 90%, KKCG B.V. Industry 5%, Milan Juřík and Jaromír Šiler 5% together. Thus, the existing proportion and value of the owners’ assets will remain unchanged.
The aim of the transaction is, among other things, to make the structure of VMG more transparent for business partners and banks. The existing structure of VMG is often incorrectly understood as only a machinery production part, although it has always had two separate branches - the original one producing cylinders and the privatised machinery one. Establishment of Cylinders Holding is a step that is expected to help suppliers and financial institutions clearly distinguish the cylinder-producing part.
Machinery Vítkovice, a.s.,and its subsidiaries came to VMG later, after former semi-state Vítkovice, a.s.,was privatised by Vítkovice Holding, a.s., in 2003. What machinery Vítkovice had in common with production of cylinders for a long time was only the privatising parent company Vítkovice Holding (originally called Lahvárna Ostrava), which is a classical holding “parent”, i.e. an association of owners.
Cylinders Holding includes Vítkovice Cylinders, Vítkovice Milmet (Poland), Cidegas, Sainver (Argentina) and Lahvárna Brod (Croatia) and will be a multinational company able to adapt its accounting standards to this situation.
The machinery part of current VMG will become a smaller, clearly focused and defined unit, which, among other things, will ensure more opportunities with investors, who may acquire this part of VMG for stabilisation and strengthening of its position in the area of sophisticated machinery and related services.
Eva Kijonková, media representation, tel. +420 721 857 097