Stock Spirits shares are also traded on the Prague Stock Exchange, where they closed at 81.50 crowns on RM-SYSTEM on Wednesday. The business values the company at 767 million pounds (23 billion crowns), both companies said in a statement, according to Reuters.
The price offered represents a premium of about 41 percent to the final price of 268 pence from Wednesday, which was the last trading day before the announcement. And it’s about 42 percent higher than the average stock price over the past three months.
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“Another bombastic report. A report on the success of Czech business, on the fact that Czech managers can hand over the company to foreign countries and they will take it a step further on the European market,” commented Radim Dohnal, an analyst at Capitalinked.com. At the same time, according to him, it is another blow to the Prague Stock Exchange. At this rate, only companies will remain on the Prague Stock Exchange when the majority owner is not interested in or able to control one hundred percent of the company or does not want to risk the process of withdrawal from the market and the associated reputational risks, he added.
Stock’s weight in the PX index is only 2.8 percent, added Cyrrus analyst Tomas Pfeiler. On average, about 20,000 shares have been traded daily in the last year. At an average annual price, this would mean CZK 1.6 million per day. “This is a small fraction of the total volume of trades on the Prague Stock Exchange. At a symbolic level, however, this step means that another company is leaving the Prague floor, which makes the domestic stock exchange less attractive in the eyes of foreign investors,” he said.
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Stock Spirits is one of the largest producers of branded spirits and liqueurs in Central and Eastern Europe and Italy. It operates in Poland, the Czech Republic, Slovakia, Italy, Croatia and Bosnia and Herzegovina. 90 percent of its sales come from Poland, the Czech Republic and Italy. The company exports production to more than 50 countries around the world, with annual worldwide sales now exceeding 125 million liters. Stock Spirits sells brands such as Božkov, Fernet Stock or Amundsen Expedition vodka.
“Stock Spirits is a high quality business with strong brands, established market positions and significant growth potential … CVC Funds is a long-term investor in Central and Eastern Europe and looks forward to working with Stock Spirits’ management team to help support its further development, and both by supporting the existing strategy and by investing in growth opportunities, “said István Szőke from CVC.
Shares of Stock Spirits added almost 44 percent to 385.81 pence at the LSE around noon today. The price of shares on the Prague Stock Exchange copies them – here they strengthen by about 40.5 percent to 113.80 crowns.
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