6 December 2011
Integrated Rail-Casting, owned by Konstantin Zhevago, filed a EUR 19.1 mln bid for CKD Kutna Hora, a Czech producer of metal castings, Kommersant reported yesterday. A competing EUR 27.6 mln bid was filed by Russian Rail Group, whose ownership was not disclosed. The Czech facility, which is in financial recovery due to EUR 60 mln in debt it cannot service, can supply casting parts for 450 railcars monthly, which would satisfy 55% of the casting needs for Zhevago’s Stakhaniv Wagon (SVGZ UK). According to Kommersant, Kutna Hora is already under contract for commercial casting parts supplies with Stakhaniv. Roman Dmytrenko: Given the deficit of wagon casting capacities in both Ukraine and Russia, competition for the Czech asset could be fierce. Both bidders’ odds of securing the plant look even, but a win by Zhevago would be a powerful value driver for Stakhaniv, in our view.