Ceske radiokomunikace’s official report on its April 8 EGM agenda and outcome confirmed earlier media reports about the EGM.
* The company responded to the questions by minority shareholder who had forced the EGM (Netla Management) by referring to a strategic review that is currently underway (expected to last until May at the earliest).
* The company also said it had issued an information memorandum to selected parties in order to explore potential investor interest in its core business, and that its board has not considered any plans to sell the parent company’s 39% stake in RadioMobil.
* The company said that the transfer of a call option on the 39% RadioMobil stake to a 100% owned subsidiary was motivated solely by tax optimization in 2001, and that it was done in the interest of all shareholders.
* Restructuring proposals submitted by Netla Management were not approved by the EGM.
Netla Management said that it is not satisfied with the EGM’s outcome, and that it will continue to put pressure on the company (for more information).
The stock fell immediately after trading resumed yesterday (following an SEC trading suspension related to the EGM), which we attribute to the news of CZK 5.1 bil. valuation of the 39% RadioMobil stake used by Ceske radiokomunikace, which is both well below our valuation (CZK 23 bil.) and that of the market’s.
(Ondrej Datka)