C.S.CARGO Group increased the capital of key daughter companies

Management of the company returns back to the Czech Republic.

PRAGUE (June 26, 2012) – During June C.S.CARGO Group finalised a complex project of property and financial restructuring, whose part was increase in the registered capital of daughter companies in the Czech Republic and in Slovakia, decrease in the share of external sources of the Group’s financing and transfer of the holding’s central management from the Netherlands to the Czech Republic.

By the end of last year, C.S.CARGO Group started an overall restructuring process after entry of the new majority owner, the company Tuffieh Funds SICAV plc (TFS), which included audit and effectiveness assessment of the firm’s individual activities and changes in the company’s organisational structure.

Shareholder’s capital of the companies C.S.CARGO a.s., and C.S.CARGO Slovakia, a.s., was increased within the project’s realisation by 600M CZK and 180M CZK respectively. The Group’s property holding was transferred from the Netherlands to the Czech Republic where the new CS CARGO Holding, a.s. was established. But the actual management returned to the Jičín company C.S.CARGO a.s., which is a 100 % daughter firm of the newly founded holding (see attached organisational structure).

“C.S.CARGO has been and is a Czech-Slovak transport and logistics company. We are returning the management to Jičín, where there is the firm’s history, huge human resources capital and knowledge“, mentioned Jan Blaško, founding partner of TFS and Chairman of the Board of Directors in the company C.S.CARGO a.s.

Entry of the new owner enabled C.S.CARGO Group to use other forms of financing and to create its new structure, and thus to significantly decrease the share of external sources in the Group’s financing compared to the original status. Also the managerial team was reduced and renewed within the reorganisation and business conditions with key suppliers were renegotiated.

“Thanks to the capital increase, significant decrease in external financing, involvement of the whole new managerial team and restructuring of the property structure, we will be (not only financially) more stable and also able to react to market challenges and especially to the needs of our clients in a better and more flexible way,“ adds Jan Blaško.