Will AWT be a subsidiary of PKP CARGO SA?

PKP Cargo wants to take over the Czech carrier

Photo. AWT

PKP Cargo has signed a letter of intent for the potential acquisition of the Czech company Advanced World Transport BV (AWT), one of the largest private rail freight operators in Europe.

The agreement will enable the launch of negotiations on the terms of the binding agreement. No later than Friday will start due diligence, which will precede the eventual transaction.

- Just signed a letter of intent for the potential acquisition of 100 per cent. stake in AWT. This potential transaction may significantly strengthen the position of PKP Cargo in the region of Central and Eastern Europe, because this group is a major carrier - says the agency Newseria Business Adam Purwin, CEO of PKP Cargo.

The agreement signed on September 1 grants the company the exclusive right to conduct negotiations on a possible transaction within ten weeks from the date of commencement of examination of the company due diligence. It has to start until 5 September.

- In this way we realize our strategy, which we communicated to investors - emphasizes Purwin. - We talked about organic growth, but never rule out mergers and acquisitions. We hope that this PKP Cargo will be stronger in Poland and the region.

AWT is one of the largest private companies in the field of rail freight in Europe, having about 8 percent. shares in the Czech market. Provides its services primarily to large industrial plants in Central and Eastern Europe. It specializes in the transport of heavy goods and mass, including coal, steel and automotive parts. Besides the Czech Republic provides services in Slovakia, Slovenia, Hungary, Poland, Germany, Romania, Bulgaria and Croatia. Last year, it carried 12 million tonnes of cargo and transport work realized at the level of 2 719 million gross tonne-kilometers, achieving 282 million in sales revenue.

The group employs around 2 thousand. employees and manages a fleet of around 160 locomotives and 5 thousand. 100 wagons.It belongs to the steadily developing intermodal transport terminal open (combining different modes of transport) Ostrava-Paskov. The Group also supports about 60 railway sidings for the largest industrial companies in the Czech Republic.

PKP Cargo, leader of the Polish transport market is the second largest operator in the EU. Last year the company transported more than 114 million tons of goods.