The Czech Press Agency (CTK) yesterday reported that Ceske radiokomunikace’s long-awaited EGM will take place on December 28, 2001. Bivideon, which recently paid for its 51% stake bought from the government and became a shareholder, will want to replace the supervisory board and the board of directors. According to CTK, the EGM’s agenda includes also a decision on the distribution of retained 2000 profit (speculation on a dividend has been on the market for some time).
The retained 2000 profit stood at CZK 2.47 bil. (CZK 80 per share). On the one hand, we estimate Ceske radiokomunikace needs some CZK 1.7 bil. for capex and an increase in shareholder capital at the RadioMobil subsidiary (already approved), leaving in theory some CZK 0.8 bil. for distribution (CZK 25 per share). On the other hand, the under-leveraged company can easily borrow to finance these needs, effectively leaving most or all of the retained profits for distribution. So the estimated range for a possible dividend is CZK 25–80 per share, the outcome will depend on Bivideon’s strategy for Ceske radiokomunikace. The stock will likely gain in response to the news.
An official invitation to the EGM (including the record date) is yet to be published in newspapers, as required.
(Ondrej Datka)