Metrostav moves to bail out Slovak contractor Doprastav
In a move to pour more capital into its Slovak sister company Doprastav, Czech construction giant Metrostav has purchased two of its subsidiaries: PK Metrostav and Doprastav Asfalt.
The price of the transaction has not been disclosed. Both Metrostav and Doprastav are members of the DDM group. Doprastav is in financial turmoil at the moment, racking up nearly €20m in operational losses in 2011, and has already laid off 200 people. Metrostav officials would not comment on the precise reasons for the transactions, but Doprastav’s president told Hospodářské noviny it was a financial injection.
Doprastav hopes to be able to buy back its subsidiaries, at some point hoping to win upcoming transport infrastructure tenders for motorway, tunnel and railways projects. (source: cijjournal.com)