Today Telefonica should pay the remaining 90% of the acquisition price of CZK 82.6bn and the shares should be transferred from the NPF to Telefonica. Within 60 days Telefonica has to call a minority buyout offer. The 6MWA, which constitutes the lower limit for the buyout price, currently stands at approximately CZK 442.
Today is also the last day the stock can be traded with AGM rights. The AGM is scheduled for June 23. Among other matters, distribution of profit is on the agenda, but yesterday the company announced that the BoD will not propose any dividend payment. This is in line with our and the market’s expectation. We expect a decision on dividends to be made after the obligatory buyout offer. Under the approved dividend policy of paying up to 70% of consolidated net profit, the CT dividend could amount to CZK 12/share. However, according to Czech Accounting Standards, the company could pay as much as CZK 28/share. Given CT’s capital structure, CAPEX needs and free cash flow, we expect dividends to be at the higher end of the potential dividend range (CZK 12–28/share).
Separately, according to rumours, Telefonica plans to replace CEO Gabriel Berdar with a foreign manager. Personnel changes could be addressed at the upcoming AGM of June 23.