The Czech cabinet has approved the sale of the government’s 48.4% stake in Skoda Holding (held by the Czech Consolidation Agency, CKA) to Appian Machinery. The CZK350 million ($11.5 million) purchase price includes assets worth CZK4.5 billion ($148 million).

Appian Machinery aims to acquire the remaining stake in Skoda Holding and other assets, including buildings. This would bring the total price to CZK800 million ($26.3 million).

Czech finance minister Bohuslav Sobotka said: “The price is in line with the situation of the holding, and was not the only criterion we used to select the acquirer of the shares. Our prime concern was to guarantee the company’s prospects.” Appian Machinery is a subsidiary of the US-based Appian Group, which already owns mining firm Mostecka Uhelna, engineering firm Krusnohorske Strojirny, and four heat plants in the Czech Republic.

Formed in April 2000, Skoda Holding was established as part of the restructuring of Skoda.