EC authorises Czech Republic to sell railway catering
IP/06/834 Commission authorises the Czech Republic to sell shares of its railway catering company to Czech Railways
The European Commission has decided not to raise any objections to a decision of the Czech authorities to sell a part of the shares of its railway catering company to Czech Railways. The measure does not constitute aid in the sense of the EC Treaty and does therefore not distort competition.
The measure concerns the transfer of 38,79% of shares in the Czech railway joint stock catering company Jídelní a luzkové voze (JLV), currently held by the National Property Fund of the Czech Republic, in the form of a direct sale to Czech Railways joint stock company.
The crucial factor in determining whether or not a State aid has been granted is the existence of an economic advantage for Czech Railways. Several independent evaluations have been carried out in order to determine the value of the shares to be sold, which resulted in an estimated value of 38.79% of the JLV shares between CZK 15.5 million and 17.3 million. As Czech Railways will pay CZK 20 million for the shares (approx. € 700.000) the Commission concluded that the sale will take place under market conditions. Therefore the acquisition of the sales by Czech Railways does not grant an economic advantage to Czech Railways and, accordingly, does not constitute state aid as outlined in Article 87 of the EC Treaty.