The minority-investor buy-out offer from Bivideon, Cra's majority owner, at 440 CZK per share ended yesterday. The company reported a day before the end of the buy-out that its holdings in the company had reached almost 94%. 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) the approval of the delisting of Cra's shares at a 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 a stake of over 90% would qualify it for minorities squeeze out. Minorities would have to be compensated based on expert valuation. Nevertheless, this transaction would be monitored by the Securities Commission (SEC), hence there is a risk that the price would not reach the level of the just completed buy-out, i.e. CZK 440 per share.
Tomáš Gatěk