KSB participates in a "pioneering" legal project: two major Czech companies have merged into European Company (Societas Europaea - SE)

In a pioneering legal move, the first ever Cypriot European company (societaseuropea) - RPG Industries SE - was registered by the Cypriot authorities on 3August 2006. This European company was formed by a merger of two significantCzech companies Karbon Invest and Charles Capital into their Cypriot parent.European company is a new type of corporation introduced recently by the EU law.It is for the first time that important Czech companies have participated in atrue cross-border merger.

The significance of the SE legal form is that it allows companies fromdifferent EU member states to merge while avoiding the usual constraints ofdiffering legal systems.

The deal forms a part of the highly complex restructuring of RPG Group - adiversified holding focused primarily on hard coal mining, coke production andenergy. RPG Group consists of a number of entities, including OKD, a.s., one ofthe largest and most important Czech companies. Kocián Šolc Balaštík advised theparent company in relation to the merger and was responsible for all Czech andEU law aspects of this landmark transaction. (On matters of Cypriot law, advicewas provided by the leading Cypriot law firm Andreas Neocleous & Co.)