The government’s ability to waive the buy-out obligation for buyers of the state’s stakes will soon be restored. The President signed the latest amendment yesterday (both houses of the parliament passed it earlier). Should the final legal procedure be completed by the end of March, the amendment could take effect on April 1 (or on May 1, if otherwise).
The buyers of government stakes now know that they will not have to offer post-privatisation buy-outs to minority shareholders, which could result in somewhat higher bidding prices than if the buy-outs had been mandatory for them. Some minority shareholders may have been looking forward to exit at a relatively high price (the higher of 6M average price or 85% of the selling price), and these may be disappointed by the absence of mandatory buyouts after privatisation. However, for the government’s selling prices, as well as for the long-term liquidity and investability of Czech blue chips, the amendment is positive.
(Ondřej Daťka)