Zetor with a new owner

Article Abstract:

Zetor (Brno, Czech Republic), tractor manufacturer, should have a 97.7% stake acquired by the trade and engineering group Motokov Group (MG) (Prague, Czech Republic) by 2000. MG holds a 34% stake in Zetor at the moment. The firm bought the stake from the state bank Konsolidacni banka (Czech Republic) in 1998. The exports of tractors from Zetor represent about 40% of MG's total turnover. Zetor exports tractors to the US, among others. The firm will export about 1,600 tractors to the US market in 1998. Zetor stabilised its production to 13,000 tractors per year in 1998. The company is not profitable and has a lack of finances at the moment. Zetor's cumulative losses for the last few years are 2 bil Kc. The losses originated at the beginning of the 1990's, when Zetor decreased its production. The company decreased its production to 5,000-6,000 pieces per year in 1993 and 1994 compared to about 25,000 tractors per year at the end of the 1980's.

Asset sales & divestitures, Acquisitions & mergers, Engineering Services, Farm Machinery and Equipment Manufacturing, Wheel Tractors, Tractors, Zetor A.S., Motokov Group

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A new owner of paralysed wings

Article Abstract:

Let (Kunovice, Czech Republic), aeroplane manufacturer, expects its production to be revived and its profitability to return due to the entrance of Ayres Corp (US). Ayres Corp, which acquired a 93.3% stake in Let in 1998, would like to co-operate with the firm in the production of its Loadmaster aeroplanes. Let was one of the most important Eastern-European aircraft firms till 1989. The firm was the world's largest manufacturer of 19-seat turbo-prop aeroplanes. The company lost all its markets and its reputation after 1989. The firm's payables and bank credits were about 5.2 bil Kc in 1996. The first step towards the sale of Let was judicial settlement in 1996. The firm's payables and credits have decreased to about 2 bil Kc.

Comment:

Let expects its production to be revived and its profitability to return due to the entrance of company, Czech Rep

United States, Foreign operations, Aircraft, Aircraft Manufacturing, Parent-to-subsidiary activities, Subsidiary-to-parent activities, Let, Article, Ayres Corp.

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