Central European Handling has acquired Air Cargo Terminal in Prague from Czech Airlines after it posted the highest bid in an electronic auction. The unspecified price, was said to “significantly” exceed ACT’s book value according to a statement from Czech Airlines.
Shareholders will vote on the sale of the 100 per cent equity share in ACT in July.
Czech said the aim of the divestment was to gain funds required for “the bridging of a financially complicated period at the beginning of 2008,” which includes clearing accumulated debt.
It also intends on pumping some of the funds into infrastructure investment including construction of Hangar G– a new aircraft repair and maintenance centre.
At the airline’s AGM in July 2006 shareholders approved a three-year strategy for the “rescue, stabilisation, and development” of the company. Analyses were carried out in August and September last year on selected parts of the business, with the freight terminal selected as a suitable candidate for divestment because it was not a core business of the airline.
Kamil Slavik, former Czech Airlines Cargo Director and logistics consultant was appointed to lead ACT activities.