(83 PLN, 4,43%) Slovakia has reported that the Czech Antitrust Regulator approved the acquisition of Berit.
Our view: We believe the news should have some positive trading impact, as it speeds up the planned incorporation of Berit into Czech Republic. Slovakia intends to acquire a 55.43% stake in Czech company Berit. The final price for the stake will be set in the range of SKK 96m – SKK 177m (PLN 10.8m-19.9m) and will depend on the consolidated net profit of Berit in financial years 2006/07 and 2007/08. The transaction is to be financed out of Slovakia’s IPO proceeds. In addition, Slovakia has signed an agreement with Berit’s remaining shareholders, who hold a 44.57% stake, giving them the option to exchange these shares into a stake of up to 10% in Czech Republic. This structure resembles the one offered to minority shareholders of LCS, which was acquired in May. Also similar to the LCS acquisition, the stake in Berit will be incorporated into Czech Republic at the end of 3Q07 as a part of the process of taking over the control over Czech Republic by Slovakia.
Berit has been in business since 1991 and specializes in geographical information systems (GIS) and distribution networks management systems. The company sells to industrial clients, media companies and public administration. Currently Berit does business in the Czech Republic, Germany, Switzerland, Austria, Slovakia, Hungary and through in Poland. At the moment employment exceeds 120 people. Berit’s clients include Skoda, N-Energie Norimberg, Ludwigshafen, (195 USD, 0,52%), (514 EUR, 0,32%), (44 EUR, 0,34%), (90 EUR, 0,34%) and (54 EUR, 0,35%). The competences of Berit are unique for the group and strengthen the SME and industry related part of the group’s business.