Prokom and partners need to restructure PVT investment

Following the signing of a contract, according to which Prokom together with Czech and Slovak financial group J&T and Dutch-based Middle Europe Investment are to take over a 96.5% stake in Czech IT system integrator PVT, the companies now need to immediately restructure the new acquisition. Prokom is to take over 25% of the shares for a price of $14 million. According to the latest annual report issued by PVT, the company has recorded a sudden 40% drop in revenues for 2002. PVT's management claims that their customers left when they knew the company was for sale. For the first time the company has not recorded an operational profit, showing losses of $200,000; therefore, the leading domestic system integrator will have to invest much more than the stake price in order to improve the financial situation of PVT. (Parkiet, p. 1) A.K.