Crystalex privatisation delays sell-off

Czech Republic glassware producer Crystalex a.s. is facing further delays over the sale of a 42% stake in the company held by the Fund for National Assets (FNM). The sale is now unlikely to go ahead b…

Czech Republic glassware producer Crystalex a.s. is facing further delays over the sale of a 42% stake in the company held by the Fund for National Assets (FNM). The sale is now unlikely to go ahead before mid-1996. The problems date back to 1994 when the FNM held a share tender which was won by Mottl Glas s.r.o. of Prague with a bid of Czk 1.06 billion (Czk 430.6 million reserve price). Mottl Glas was unable to finance the deal, however, and the FNM cancelled it. Failure to resolve the ownership issue has forced Crystalex to postpone some of its restructuring as the FNM prefers to leave major decisions to the future owner of the 42% stake, finance director Kvetoslav Basl said. The company is nonetheless enjoying steady sales growth and estimates its 1995 net profit at Czk 85 million. Two thirds of output is being exported through trading company Skloexport. Crystalex, which employs 5,000 people, is currently installing a Czk 120 million automated production line.