The weekly Czech Euro magazine reported today that the bid submitted by the TeleDanmark/Deutsche Bank consortium foresees (i) post-privatization sale of Ceske radiokomunikace parent company’s television and radio transmission assets to Crown Castle International, (ii) TeleDanmark’s purchase of the parent company’s 50% stake in Contactel and (iii) the sale of TeleDanmark’s 20.7% stake of Ceske radiokomunikace’s parent company to Deutsche Bank. This series of transactions would leave Deutsche Bank as the 71.7% owner of the listed Ceske radiokomunikace parent company (the rest is free float), and the parent company would be left owning its telecommunication assets (it acts as a wholesale operator) and a 39% stake in RadioMobil. The real possibility of a post-privatization split of the company has been expected, so the news does not come as a total surprise. On the one hand, the break-up of company may result in a better overall valuation of the company. On the other hand, such restructuring may represent risks for minority shareholders and a fear of this may damage the stock. In terms of the immediate response today, it seems more likely that the latter (negative) effect may prevail.
(Ondřej Daťka)