PKP CARGO has signed a Letter of Intent regarding potential purchase of 100% shares of CTL Logistics. CTL is a promising company with stable market share in train freight transport in Poland and Germany. The Letter of Intent stipulates that both sides of the agreement are able to start negotiations on conditions of a potential transaction. At the same time, PKP CARGO has informed its investors about a potential acquisition of the Czech company AWT, one of the largest private train freight carriers in Europe.
PKP CARGO has signed a Letter of Intent with the European Rail Freight II S.à r.l, the major shareholder of CTL. At the same time, PKP CARGO has submitted to the President of the Office of Competition and Consumer Protection (UOKiK) a request for consent to a potential taking control over CTL.
Regarding AWT, PKP CARGO has signed a Memorandum of Understanding allowing the company to execute due diligence of AWT, which will last 10 weeks. At the same time, PKP CARGO was granted exclusivity for the conduct of negotiations with the potential sellers regarding the potential transaction.
CTL Group is an international company, offering comprehensive logistics services in the field of railway and road transport of goods, shipping, handling sidings, rolling stock maintenance, construction and maintenance of railway infrastructure, services, cargo handling, customs consultancy and supply of raw materials. The Group operates in Eastern and Western Europe.
CTL is an universal logistics operator. Its key business is the rail freight transport and also includes other elements allowing it to render the logistical process for customers. The Group has at its disposal nearly 200 locomotives and over 4.800 wagons. It also has its own fleet repair facilities. CTL employs over 1.800 employees. It has a network of 29 railway sidings in Poland as well as strategically located terminals in the east of the country. In 2013, CTL Group transported 12.6 million tons of loads and had freight turnover of 4 268.2 million gross tkm, achieving sales of PLN 726.6 million.
The AWT Group is one of the largest private service companies operating in the rail freight transport market in Europe with 8% share in the rail freight market in the Czech Republic in terms of freight turnover in 2013. Additionally, the AWT Group renders services in Slovakia, Slovenia, Hungary, Poland, Germany, Romania, Bulgaria and Croatia. In 2013, the AWT Group transported 12 million tons of freight, had freight turnover of 2,719 million gross tkm and generated sales of EUR 282 million.
With the staff of approximately 2,000 the AWT Group renders complex services mostly to large industrial plants in Central and Eastern Europe. The AWT Group specialises in transporting heavy and bulk loads, including coal, steel and vehicle parts.
The AWT Group manages a rolling stock comprising approximately 160 locomotives and 5,100 wagons. In the Czech Republic, the AWT Group has a continuously growing intermodal transport terminal of Ostrava-Paskov and services approximately 60 railway sidings for some of the largest industrial plants in the Czech Republic.