Latest comment from financial markets

CZGB Auction Preview: Czech CPI lifted CZGB yields

14/05/2024 14:42

Issuance activity: Tomorrow, MinFin is scheduled to auction CZ5.0bn of 2032 bonds, CZK3.0bn of 2034 bonds and CZK1.0bn of 2037 bonds. We estimate that almost 33% of CZGB’s annual gross issuance has been covered so far this year. However, we see a risk, that the state budget deficit could eventually exceed the planned CZK252.0bn as it already reached CZK153.1bn ytd in April. All in all, we think it is still unlikely that the pace of issuance will ease over the year.

Autor: Jaromír Gec Show more

Latest comment from the equity market

Company notes: Colt CZ: Completion of Sellier & Bellot acquisition

17/05/2024 11:12

Colt CZ announced that it has completed the acquisition of 100% of the shares of Sellier & Bellot. Colt is acquiring a truly strategic asset that will complement its portfolio.

As expected, the transaction price consists of 350m USD (CZK7.96 billion) in cash and the issuance of 13,476,440 new Colt CZ shares. The new shares were issued on May 16 at a price of EUR24.1066 (CZK595.8, or CZK8bn in total). S&B will also be consolidated as of May 16.

We estimate that the S&B acquisition is valued at about 9x EV/EBITDA. This is slightly below Colt's multiple.

Colt's leverage is expected to increase to 2.6x (net debt / EBITDA) following the acquisition.

The seller, CBC Europe, will receive a 27.71% stake in Colt CZ. The majority owner remains Ceska zbrojovka Partners SE, which will control 54.5% of all shares after the transaction. The free float amounts to 17.8%.

Autor: Bohumil Trampota Show more