Tatra Trucks Investment Blocked by Minority Shareholder
Dispute Threatens Multi-Billion Crown Expansion, Job Creation
A significant investment plan for Tatra Trucks has been derailed by its minority shareholder, the Promet Group, throwing billions of crowns in planned expansion into jeopardy. The clash at a General Meeting has ignited a public feud between the two major stakeholders.
Capital Hike Rejected Amidst Data Dispute
The Promet Group vetoed an increase in the company’s registered capital, a move essential for financing over seven billion crowns in planned investments. Tatra Trucks CEO Kristijan Fiket stated that this capital injection was critical for doubling production, modernizing operations, and creating hundreds of local jobs.
“There is no vision of paper – it is a specific and prepared project with an immediate impact on the future of the Tatra.”
—Kristijan Fiket, CEO of Tatra Trucks
David Chour, Vice-Chairman of the Board and CEO, characterized the Promet Group’s stance as a direct attack on Tatra’s future, accusing the minority shareholder of consistent obstruction and destabilization efforts.
Promet Cites Lack of Transparency
Denisa Materová, representing the Promet Group, explained their refusal to approve the 2.7 billion crown capital increase, citing a lack of essential documentation from Tatra’s management. She asserted that the management had not provided a comprehensive long-term strategy, market analysis, or detailed financial statements.
“Unfortunately, even today, the Tatra Trucks management did not represent the complete long-term strategy of the company that would justify the requirement of CZK 2.7 billion to increase the registered capital.”
—Denisa Materová, Promet Group
Materová added that Promet had proposed and supported a much smaller capital increase of 100 million crowns for critical investments, but this proposal was also rejected by the General Meeting.
CSG Accuses Promet of “Bullying Conduct”
The Czechoslovak Group (CSG), the majority shareholder, voiced strong criticism of the Promet Group’s actions. The CEO of CSG, Michal Strnad, alleged a pattern of obstructive and bullying behavior from the Promet leadership.
“Instead of any meaningful cooperation, we monitor the long-term obstructive and bullying conduct from the leadership of the Promet – from the public dissemination of false statements to the requirements of the general meeting for immediate answers to extensive and complex questions.”
—Michal Strnad, CEO of CSG
In 2023, the truck manufacturer Tatra Trucks produced 1,548 vehicles, an increase from the previous year, and achieved a net profit of 19.3 million crowns after a loss. The company currently employs over 1,800 people.
Background of Shareholder Dynamics
CSG, led by Michal Strnad, holds a 65 percent stake in Tatra Trucks, while the Mater family’s Promet Group owns the remaining 35 percent. The two entities have been shareholders since 2013 when the company was acquired from a crisis period.
Tatra Trucks aims to increase its production capacity to 3,000 vehicles annually, enhancing its global market competitiveness. The blocked investment was intended to facilitate this growth, alongside modernization efforts and job creation.
Future Outlook and Potential Talks
Despite the current impasse, Materová expressed openness to supporting specific investments in the future and indicated a desire to meet with CSG owner Michal Strnad to present their own proposals.