Cra's majority owner, Bivideon, announced on Friday that its stake in Cra totals 94.2% following the buy-out offer that ended on Thursday (9/9). Last week, Bivideon's spokesman said that its final share in Cra would determine further steps. We believe that Bivideon intends to further increase its shareholdings in Cra. This could be done by: (i) approval of the delisting of Cra's shares at an EGM. In this case a new buy-out offer would be required but we believe that the price would not differ substantially from the just completed buy-out, i.e. CZK 440 per share; (ii) ownership of more than 90% would qualify it for minorities squeeze out. Minorities would have to be compensated based on a new expert valuation. Nevertheless, this transaction would not be monitored by the Securities Commission (SEC). Hence there is a risk that the price would not equal the level of the just completed buy-out, i.e. CZK 440 per share.
Tomáš Gatěk, Patria Finance