The lock-up period for Warburg Pincus in Zentiva ended on Friday, which means that Warburg Pincus can offer its stake in Zentiva as of Monday. Warburg Pincus sold 4.5m and 6.2m shares in Zentiva on the 19th and 20th of September respectively and decreased its stake in the company to 19.6% from the previous 48%. Selling these shares was connected with the 120-day lock-up period. Because of the gradual decrease of Warburg Pincus’s stake in Zentiva, we expect further reduction after the end of the latest lock up period. The current stake of 19.6% that Warburg Pincus holds in Zentiva represents 7.5m shares. We believe that potential investors’ interest in bigger stake in Zentiva is substantial, which eliminate the risk of excessive supply and we do not expect that Zentiva’s shares will go under selling pressure. On the contrary, we expect the stake to be subscribed to quickly and removing the risk of another placements. As a consequence we reiterate our Buy recommendation with fair value of CZK 1,334.