The valuation of Avast 180 billion crowns, which is most often speculated about, may not be the final amount. After confirming the ongoing negotiations on the sale, analysts from Berenberg stated that from the point of view of Avast’s shareholders, it would be fair to value the company at least ten billion dollars, about 218 billion crowns. They pointed out that the value of the company is supported by the increase in the number of cyber attacks.
However, there will probably be no trade in the announced amount, as it is a sale of minority shares, ie those held by the current co-founders Pavel Baudiš and Eduard Kučera. “According to public information, this is not a sale of one hundred percent of the company, but a minority stake of the founders,” explains Jan Brabec, a partner at Deloitte. The co-founders together own 35 percent of the shares.
“The value of Avast’s own transaction will probably not reach 180 billion crowns, we can consider them more as” the value of the whole company, revealed by this sale “. In this sense, we can perhaps speak of the highest transaction for a Czech company, but not necessarily the most valuable transaction, ”explains Petr Bartoň, chief economist of the Natland investment group.
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However, the sale of the minority part of Avast could mean a certain turning point in the post-communist era of the Czech Republic, Bartoň points out. “The biggest transactions cease to be between the state and investors, but between investors and each other. This is definitely an important step, “says economist Bartoň.
“In Avast, they created not a Czech version of a global product, but a global product from the Czech Republic. There are, of course, fewer such companies, but they are all the more important for global investors. They often pay a higher premium beyond the current market value, “Bartoň explains the value of Avast for foreign applicants. “With unquestionably deep Czech roots, Avast is a great business card for the Czech technology sector,” he adds.
“By selling a minority stake, and a possible withdrawal from the stock exchange – I do not assume that this will happen, it would no longer be a Czech company with a global reach, but a listed company with minority capital in the USA. The question would be how it will be with the future of Avast’s headquarters in Prague, “he speculates about the future of cybersecurity giant Brabec.
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The question is how the management of Avast approaches this, which has decided not to comment on the sale. Nevertheless, Avast has experience with the acquisition of a large competitor, in 2016 it absorbed the Brno AVG for 32 billion crowns.
“So we approached it quite brutally in the sense that each acquisition has its winner and loser. The winner is the one who gives the money, and he also decides, “Vincent Steckler, then CEO of Avast, described the settings of the merger for the Euro weekly a few years ago.
Whether the acquisition of a minority stake in Avast will actually take place will not become clear until August 11, at which time NortonLifeLock must confirm its interest. “However, after the negotiations were confirmed from both sides, the sale is very likely and I think it will actually happen,” Cyrrus analyst Anna Píchová told the E15 daily.
If the transaction takes place, the transaction could be settled in the form of cash and shares, Avast said on the page for its investors.
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