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EBRD sells its stake in Czech chocolate company; first exit from mature equity investment
The European Bank for Reconstruction and Development has sold its 12.07 per cent (representing 377,485 shares) investment in Cokoladovny a.s., the leading confectionery company of the Czech Republic, to Cokoladovny Partners B.V. (COPART). This is the first exit from a mature equity investment by the EBRD.
Guy de Selliers, Deputy Vice President, Banking at the EBRD, stated: “Cokoladovny is a successfully transformed company able to compete and succeed in its markets; this sale marks a natural departure for the EBRD. Our financial return is enhanced by the lessons learned in successfully participating in the transformation of a leading Czech company. It is the EBRD’s most mature investment in the country; it was our first investment in the Czech Republic and it is our first divestment. The cycle is now completed, allowing our funds to be redeployed for fresh investment in Czech companies”.
Noreen Doyle, EBRD’s Deputy Vice President, Finance, and member of Cokoladovny’s Board of Directors, stated: “Since privatisation in early 1992, before the splitting of the former CSFR, Cokoladovny has successfully restructured and rationalised its production operations, distribution, and sales organisation. Its brand portfolio has been an important focus of time and investment, and is now one of the company’s core strengths. Its traditionally Czech brands are highly regarded and well recognised among the country’s consumers - in a very competitive market. The overall transformation of Cokoladovny was achieved by the company’s strong management team with the close assistance and helpful cooperation of its industrial partners Nestlé and Danone”.
COPART is the investment vehicle owned equally by Nestlé S.A. of Switzerland and Groupe Danone (formery BSN) of France, the industrial partners from the company’s original privatisation in January 1992. The EBRD, which was inaugurated in April 1991, participated as an original shareholder in Cokoladovny along with Nestlé and Groupe Danone (via COPART), the Fund of National Property of the Czech Republic and Prvni Investicni a.s. under a privatisation agreement signed in January 1992. Subsequent to this privatisation, shares held by the Fund of National Property were sold in the first wave of voucher privatisation to Czech citizens.
The sale of EBRD shares and the sale price are part of an agreement concluded at the time of the original Cokoladovny privatisation, prior to the establishment of the Prague Stock Exchange and the listing of the shares thereon. The price per share was calculated in accordance with a formula negotiated and agreed at the time of the original investment.
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