The value of the Brno Trade Fairs will be estimated by the company at 500 thousand crowns

Brno - The Brno city hall, a minority owner of the Brno Trade Fairs, will assess the value of the company and individual shares due to a possible stock buyout. The contract worth 500,000 crowns was awarded to PricewaterhouseCoopers, Deputy Mayor Robert Kotzian (ODS) told reporters today. The majority owner of the fairs, Messe Düsseldorf, last year stated that it likely wanted to sell its 61 percent share. The Brno city hall has a preemptive right on a portion of these shares. The value of the shares is expected to be known by November.
   "Only after we know the values of the business shares in the company Brno Trade Fairs can we continue negotiations with our German partner. I have also informed Mr. Dirk Elbers, the Mayor of Düsseldorf and Chairman of the Supervisory Board of Messe Düsseldorf, in a letter," stated Mayor Roman Onderka (ČSSD). According to the contract, PricewaterhouseCoopers will determine the value of the Brno Trade Fairs company as well as the value of the asset share of Messe Düsseldorf and the share of the city of Brno.
    Brno currently owns 34 percent of the shares of Brno Trade Fairs, while five percent belongs to small shareholders. According to earlier estimates, the nominal value of the 61 percent of the shares held by Messe Düsseldorf is around 767.5 million crowns. Negotiations regarding the sale have so far stagnated, and the city leadership believes it is necessary to know the value of the share for progress.
    The Brno Trade Fairs company increased its revenues by 19 percent last year to 1.375 billion CZK. After taxation, it earned 132 million crowns. However, this amount also includes extraordinary items, such as the sale of Pavilion D.