E-Malt.com News article: 1254

The Southern Bohemia region and the town of Ceske Budejovice have intentions to acquire a majority stake in the state-owned brewer, Budejovicky Budvar, based in the town of Ceske Budejovice. The action followed the Czech Finance Ministry announcement that it was looking to privatise the brewer in the near future.

“The region does not see any reason for privatising Budejovicky Budvar as it is a profitable business with good management and contributes around CKr3.0 million (EUR 95 thousand) to the state budget in taxes a month,” said Karel Vachta, the deputy governor of Southern Bohemia.

Budvar is the country's third largest beer maker. Its annual output fell last year to 1.21 million hectolitres and pre-tax profit dropped to 280 million crowns ($10.2 million).

The Czech government is planning to convert Budejovicky Budvar into a joint-stock company with a view to selling off the company by the end of 2004. "The idea of privatising Budvar comes from our aim to secure funds for infrastructure, including motorways," Finance Minister Bohuslav Sobotka said during an interview on state radio. "We are carrying out analyses but no talks are being held at the moment."

However, the Czech Agriculture Ministry does not have any plans to sell the state-owned Budejovicky Budvar brewer in the near future. A spokesman for Budvar decisively denies any sales plans on part of the Agriculture Ministry, as it is not in the Ministry's interest at present, adding, however, that the situation could change in the future, the Interfax news agency reports.

However, the weekly Tyden claims that the Finance Minister, Bohuslav Sobotka, has been in secret talks with the Trade and Industry Minister, Milan Urban, about a possible plan to sell Budvar, thus sidestepping the Agriculture Ministry. The Finance Ministry has not confirmed the reports.


02 July, 2003