(Jana Tučková) On June 30, 1998, the AGM of Čokoládovny, 85% owned by a joint venture of Danone and Nestlé, should approve a split of the company into a chocolate business owned by Nestlé and a biscuit business owned by Danone. It is expected that the stock will be delisted afterwards and minority shareholders will be offered a buy-out at CZK 6,230 per share, which represents a share price of CZK 5,650 and a dividend of CZK 580. Čokoládovny should cease to exist at the beginning of 1999. While similar speculations appeared two years ago, the news is rather surprising now, but is not illogical. We recently changed our buy recommendation to hold, as we expected slower growth in the following years due in part to import restrictions being adopted in several ex-communist countries. We consider the current offer appropriate, slightly exceeding the 12-month maximum of CZK 6,200 per share and, therefore, we recommend using the offer.
According to the latest news, the stock has been suspended from PSE trading.