Certain shareholders of CZG - Česká zbrojovka Group SE have completed the sale of part of their shares in an accelerated book-building process
Prague (7 April 2022) – CZG – Česká zbrojovka Group SE (“CZG”, “the Group” or “the Company”) hereby announces that it was notified by certain shareholders about the completion of the sale of a portion of their shares through an accelerated book-building process targeted at selected investors.
According to the notification, and as a result of the transaction:
1. The price per Sale Share was set at CZK 555.
2. The total number of Sale Shares was set at 2,030,000, representing no more than 6.0% of the Company’s share capital and the total number of votes in the Company.
3. Of which (i) 1,350,000 ordinary shares was sold from the holding of Česká zbrojovka Partners SE; (ii) 300,000 ordinary shares from the holding of Jan Drahota, Chairman of the CZG Board of Directors; and (iii) 380,000 ordinary shares from the holding of Lubomír Kovařík, Chairman of the CZG Supervisory Board, representing approximately (i) 4.0%; (ii) 0.89%; and (iii) 1.13% of the Company’s share capital and the total number of votes in the Company.
4. After the completion of the sale, the total free float will increase to 7,686,140 shares, representing 22.8% of the Company’s share capital and the total number of votes in the Company.
"The offer of shares through an accelerated book-building process responds to the long-term demand of investors for our shares, which the current small free float could not meet. We believe that higher liquidity will lead to higher interest of other investors and thus make the shares more attractive," said Jan Drahota, Chairman of the Board of CZG.
According to the Company, an increased free float could also lead to lower stock price volatility. The market price should, therefore, better reflect the true value of the Company, whereby higher liquidity usually helps to prevent mispricing.
"We continue to be strategic investors and we believe in further growth of our Group's performance. We are very pleased with the market reaction, investors’ confidence and their desire to be part of our business story and the future of CZG," added René Holeček, majority shareholder of CZG, and Lubomír Kovařík, Chairman of the Supervisory Board of CZG.
WOOD & Company Financial Services, a.s. acted as the sole global coordinator in respect of the transaction.
About CZG - Česká zbrojovka Group SE
CZG – Česká zbrojovka Group (CZG), together with its subsidiaries, is one of the leading producers of firearms for military and law enforcement, personal defence, hunting, sport shooting and other commercial use. CZG’s subsidiaries include Colt’s Manufacturing Company, Česká zbrojovka, Colt Canada Corporation, CZ-USA, 4M Systems and CZ Export Praha. CZG also owns a minority stake in Spuhr i Dalby, a Swedish manufacturer of optical mounting solutions for firearms. CZG markets and sells its products mainly under the Colt, CZ (Česká zbrojovka), Colt Canada, CZ-USA, Dan Wesson, Brno Rifles and 4M Systems brands.
CZG is headquartered in the Czech Republic and has production facilities in the Czech Republic, the United States and Canada. It employs more than 2,000 people in the Czech Republic, the USA, Canada, Germany, and Sweden.
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CZG – Česká zbrojovka Group SE
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CZG – Česká zbrojovka Group SE
Phone: + 420 724 255 715