Chinese CEFC Takes 5% of J&T Financial Group
The previously announced potential entry of Chinese energy giant China Energy Company Limited (CEFC) to Czech-Slovak financial and investment group J&T now looks set to go ahead, with the Chinese investor taking an initial 5% in the J&T Finance Group.
The deal, to be cemented in the coming weeks, will see the Chinese gain a foothold in Central Europe, while J&T will gain around EUR 80 million for the stake and future backing of its new partner, the sixth largest private enterprise in China, Czech daily Hospodarske Noviny reports. Nevertheless, CEFS is demanding the share capital of the group be increased by EUR 50 million to EUR 1 billion.
CEFC may wish to increase it’s share, but for now a share under 5% means the company does not need the endorsement of the Czech National Bank and other central banks in the domains where it operates.