WOOD & Company was the sole global coordinator in the accelerated bookbuilding placement of shares of CZG - Česká zbrojovka Group (CZG), acquired by shareholders as part of the settlement in the takeover of US-based Colt Holding Company (Colt), which was completed in May this year. 770,057 ordinary shares of CZG were sold on the market. The total proceeds from the transaction amounted to approximately CZK 366m.
A group of shareholders, which acquired the CZG shares in connection with CZG’s acquisition of Colt, participated in the accelerated bookbuilding (ABB). The transaction was focused on selected investors meeting the ABB criteria. The 770,057 shares represent a c.2.3% stake in CZG's share capital. The offer price achieved at ABB was CZK 476 per share and the total yield was approximately CZK 366m.
“WOOD & Company was honoured by the confidence of Colt's shareholders and pleased to deliver a 26% gain on the share price on the closing date of the Colt acquisition on 21 May 2021. ABB-type transactions are not common on the Czech market and this particular one provided a useful boost for CZG's effective free float. The company has been one of the best-performing Czech stocks this year, as we have seen an exceptional 80% rise since CZG’s IPO. The quality of the stock is confirmed by its rapid recovery and return to previous trading levels since the ABB" commented Nick Kaufmann, Head of Equity Capital Markets & Syndicate at WOOD & Company Financial Services.
Legal services for WOOD & Co. on the deal, which was a complex transaction with more than 20 individual sellers, were provided by Allen & Overy. The sellers were coordinated by TXPATCH8445 Holdings LLC, whose legal advisers were Debevoise & Plimpton.