Final bids to buy SAZKA announced

Immediate opening of envelopes was decided in order to avoid any speculation about handling of tenders in envelopes publicly indicated by some entities. The envelopes were opened successively in the order in which they were delivered to the insolvency administrator.

The first bid opened was offer of SÁZKOVÁ KANCELÁŘ, delivered to the administrator as soon as on Thursday 22 September 2011 prior to 6 pm. The envelope contained a bid price of us$ 210.2 million. Second in line was opened offer of the company CHARLCOAL, delivered on 23 September 2011 after 1 pm and the offered bid price was us$ 198.5 million. The last bid was delivered by SYNOT TIP on Friday 23 September 2011 approximately at 2.30 p.m., the bid was us$ 27,585.

On Friday 23 September 2011 shortly before 6 p.m. two identical envelopes marked as ‘Penta Investments offer’ were delivered to the insolvency administrator and a law firm HKDW Legal, which provides legal services to the insolvency administrator’s team. The company Penta Investments submitted a bid of us$ 256.5 million, stating that the amount will be paid by 30 September 2011. Beside the fact that this offer was made outside the regular tender conditions, it was also incomplete and did not include some necessary documents. Also the amount which the company Penta Investments offered was not deposited to a blocked account of the insolvency administrator opened specially for this purpose. Only current account statement of Penta Investments with a balance of over us$ 281.3 million was attached to the offer. Legal team of the insolvency administrator had to formally review and evaluate the bids during the weekend.

During Monday morning, the insolvency administrator informed the creditors' committee about the results of the selection process and asked for approval with conclusion of the contract on sale of a business to monetize the estate of SAZKA, with the entity that submitted a tender with the highest purchase price, i.e. SÁZKOVÁ KANCELÁŘ. The creditors' committee approved this procedure. Basing on the approval the insolvency administrator signed the contract last 26 September and sent it to the winner of the tender.

The insolvency administrator and his team are delighted by the fact that this phase of the selection process was completed successfully, despite the efforts of certain actors to disrupt its progress. SAZKA needs a new owner in the shortest possible time to be able to further develop and be competitive.

The company is stable but due to the fact that despite to the ongoing bankruptcy proceedings it has been paying all fees, salaries, most operating costs and ultimately won hundreds of millions of crowns in an extraordinary regime for several months, it needs a considerable investment (e.g. computer systems) and it needs a clearly specified and new business direction and also a management team, who will manage the company instead of the insolvency administrator.
 
The most recent big prize was won yesterday, i.e. on Sunday 25 September 2011 in the first tier of Sportka lottery. The lucky winner placed the bet in Prague’s POS and won us$ 583,991.
 
Efforts by Penta Investments can not be understood as a real offer but only as an attempt to cause damage to SAZKA, that would lead to consequent growth of a rival company Fortuna owned by Penta Investments. It can therefore be assumed that if Penta Investments was really interested in the business it would take part in the regular selection process. Moreover, cases are known from the past that Penta Investments proceeded similarly in tenders for the sale of other large companies.