Orco: Radovan Vitek likely to gain full control of company and subsequently to sell several Orco’s assets
Radoven Vitek, the owner of one-third in the listed real estate developer Orco, has higher chances than his opponents to gain full control of the company, wrote Hospodarske Noviny. The Czech language item cited two financial analysts, Pavel Ryska and Dusan Jalovy. However they noted that the fate of the company will lie with the decision of the minority shareholders.
The report specified that in the Orco General Meeting to be held on 6 December the shareholders will vote on Vitek’s proposal to remove six other members of Orco's board, leaving only Vitek, Edward Moss Hughes, who was named to the Board on Vitek’s proposal and the founder of the company Jean Francois Ott. The contrary proposal, suggested by two American funds – Kingstown Capital Management and Alchemy Special Opportunities – suggests a removal of Vitek and Hughes.
The item speculated that it is likely that the two funds will enforce postponing of the GM in order to gain more time for negotiations with other shareholders. In such a case the GM would be held at the beginning of January.
In case Vitek is successful in his intention to take control of the company, then he will, according to Hospodarske Noviny's undisclosed sources, lay off a high number of Orco employees and sell several company assets and projects. He will retain the core project in Bubny along with some other profitable assets.
Source Hospodarske Noviny