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ACQUISITION OF COLT-CZ AND NIPPON STEEL

Japanese steel company Nippon Steel today announced the acquisition of U.S. Steel. The agreed price is USD 55 per share, for a total of USD 14.9 billion.

Colt CZ announced this morning that it is buying Czech small caliber ammunition manufacturer Sellier & Bellot. It is acquiring a 100% stake. The seller is CBC Europe. Colt will pay partly in cash and partly in shares. The cash consideration is $350 million. USD 350m (approx. CZK 7.8bn). It will also pay through a new issue of Colt shares, which will result in CBC Europe acquiring a stake of approximately 27-28% in the share capital of Colt CZ following the closing of the transaction.

This is a large transaction, which is still slightly higher than the previous year's acquisition of the US-based Colt. Colt CZ is buying a company with annual sales close to CZK 7 billion and an operating EBITDA of around CZK 1.5 billion (2022 figures). After the acquisition, Colt's pro-forma annual sales will reach levels close to CZK 22 billion and EBITDA in the range of CZK 4.5 - 5 billion. These are de facto levels in line with Colt management's medium-term ambitions.


However, we don't know the details of the acquisition yet, or am I wrong? I wonder how many new shares are being issued. The dilution is pretty significant, although I like the acquisition strategy.

Now I read that Fio estimates the issue to be worth approximately CZK 7 billion... That would be some 35-40% more shares? Maybe I was wrong in my calculation.

It sort of fit approximately when I was recalculating.

I haven't read the exact number anywhere yet.