Although we believe Ceske radiokomunikace’s stock price is significantly below its fundamental value (our fundamental value estimate is CZK 414 per share, out of which CZK 390 is attributable to T-Mobile CZ’s stake), given the high degree of uncertainty related to an exit from the investment and future restructuring (mainly the lack interest of Deutsche Telecom, a 61% shareholder, in acquiring the remaining stake; transparency concerns related to the divestiture; fears of potential minority abuse) we maintain our hold recommendation.
Jiří Soustružník