Brno will have the fairs appraised, continues negotiations for their purchase

Brno - The Brno city hall will have the trade fairs evaluated to know their exact value. The result will be used in further negotiations regarding the purchase of their shares, Brno Mayor Roman Onderka told reporters today. The company Messe Düsseldorf has offered its stake, which is 61 percent of the shares, to Brno. In the case of a buyout, the city hall would own 95 percent of the trade fair shares, with five percent remaining for minor shareholders.
    The Brno city hall has an option from the past to buy 17 percent of the shares, thus becoming the majority owner. Currently, it holds 34 percent of the shares. The city leadership is considering the acquisition of all shares from Messe Düsseldorf. Their nominal value is 767.5 million crowns, but the actual price may be different. "The Brno city council approved the intention to commission a public procurement for the valuation of the Veletrhy Brno company in the form of an expert appraisal for the purposes of a possible future buyout of the stake," Onderka stated.
    Brno's leadership has been negotiating the buyout of the trade fair shares since last year. So far, they have exchanged several letters with Messe Düsseldorf, and representatives from both sides have also met. After the valuation of the trade fairs, the city is likely to announce a tender for a company that will provide legal advice during the buyout negotiations. According to the mayor's previous statements, this is a legally very complex matter.
    Since October of last year, a working group has been mapping the contractual relationships among the Trade Fairs, the city, and Messe Düsseldorf, as well as the relationship between preemptive and option rights. The city must verify possible sources of financing and the impact of the purchase on the city’s budget, negotiate with banks, and prepare a strategy for the company's further operations.
    In recent years, Veletrhy Brno has struggled with the effects of the economic crisis and has had to cancel some events due to losses. The trade fairs continue a tradition of exhibitions that began in the city in 1928. Brno gained its reputation as a trade fair city in the 1950s, when engineering fairs began.