TelSource and the government yesterday signed an agreement concerning the joint sale of their stakes in Cesky Telecom. They will jointly offer at least a 51% stake (depending on the strategic investor’s preferences), two-thirds from the government and one-third from TelSource. Although the signing of the joint-sale agreement is an important event vis-a-vis privatization, it has been expected and should not have much impact on the stock.
The following issues are worth highlighting related to today’s AGM:
(i) TelSource and the National Property Fund may propose and approve a dividend out of 2000 profits (2000 EPS was CZK 19.7), but the amount and indeed the approval are uncertain. Although a dividend could support share value somewhat, its payment or non-payment will not significantly change the stock’s outlook.
(ii) TelSource’s registered shares (27% of the total) should be converted into transferable bearer shares (which is a precondition for a future sale of this stock).
(Ondřej Daťka)