Sazka reached an agreement to avert bankruptcy

Penta and E-invest will provide as much financing as necessary in order to ensure the full financial stabilization of Sazka. The long-term goal of the strategic partnership is creating a national “champion” of the gaming industry.

The agreement on the investment by new partners is in accordance with bond documentation and Resolution of the Board of Directors of Sazka, which authorized Martin Ulcák to negotiate with strategic partners. The agreement is subject to company shareholders’ consent.

Penta and E-invest receive a share of the company’s profits in return for their investment. There will be changes in the management of Sazka. A steering committee will be established, which will manage the company together with the Board of Directors. The investors will have a majority in the steering committee and all-important decisions will be subject to its approval. JUDr. Aleš Hušák remains the CEO and Chairman of the Board of Directors of Sazka.

“On behalf of CSTV, which is the majority shareholder of Sazka, I guarantee full support of this plan. For us is significant that this ends all discussions about the possible insolvency of Sazka, and its financial instability. Sazka is acquiring strong partners and will thus continue to be able to fulfill its role as a key partner for Czech sport. Its shares remain in the hands of Czech sport,” stated Pavel Koran, CSTV Chairman.

“I welcome the concluded agreement, in spite of the fact that the road to it was not easy. As far as Penta is concerned, it is clear that our relations have not been good in recent years, but in the interest in resolving the current situation, once again we were able to find common ground,” said Hušák.

 “We had to back down from many of our ideas; the result is a pragmatic compromise and agreement that means that Sazka is no longer facing the threat of insolvency. We view cooperation with Sazka, as a huge investment opportunity not only for us, but also for Czech sport, which can only gain from our partnership,” stated Marek Dospiva, Partner of the Penta Investment Group.

“Together with Penta we are prepared to invest as much as is necessary to terminate the insolvency proceedings against Sazka.  At the same time, we are guaranteeing an annual contribution in the amount of CZK 200 million for sports associations,” said Martin Ulcák, Controlling Shareholder of E-invest.