Colt CZ Group, one of the largest Czech arms groups, is launching the sale of up to 3.9 million shares through an accelerated book-build (ABB). This represents up to 6.91 per cent of the company's total number of shares.
The move follows the approval of a capital increase by the board of directors on Oct. 4, 2024. The shares will be offered to selected qualified investors, as announced by the company on its website.
Colt CZ Group plans to use the proceeds, among other things, to strengthen its equity capital and to comprehensively settle the acquisition of 100 percent of Sellier & Bellot's shares. It also intends to accelerate debt reduction and focus on other strategic investments and acquisitions, such as its earlier purchase of American icon Colt.
"This includes, for example, the modernisation of the small arms and ammunition production capacities of Sellier & Bellot and Saltech AG, which were acquired in the last two years, as well as the acquisition of other companies that will expand the product portfolio of the Colt CZ group," the company said in its announcement.
Monday, October 14 has been set as the first day of the book-build, with closing and pricing expected on Tuesday, October 15. The first trading day of the newly issued shares on the stock exchange is scheduled for Wednesday, October 16, and the final settlement of the transaction is expected to take place on Friday, October 18. For this reason, trading the company's shares on the Prague Stock Exchange was suspended on Tuesday.
The Colt CZ Group acquired 100 percent of the shares of Sellier & Bellot through a combination of a cash payment of $350 million and the issuance of 13,476,440 new common shares of Colt CZ. The total acquisition price amounted to $703 million, after deducting the net debt of Sellier & Bellot.
The selling company, CBC Europe, thus gained a 27.71 percent stake in the share capital of Colt CZ Group. The new shares were issued as of May 16, 2024, and Sellier & Bellot entered the group consolidation as of the same date.
Prepared by foreign office CzechTrade Romania
Source: E15.cz