Three private equity firms have reportedly demonstrated an interest in taking over Polish supermarket operator Eko Holding. Advent International, Penta Investments and Mid Europa Partners have all apparently been eying the company.
“Eko Holding is an interesting company and it would align well with our strategy,” an anonymous Mid Europa Partners representative told Parkiet.
The newspaper added that both Penta and Mid Europa are frustrated with Eko Holding’s main shareholder and president of the board, Krzysztof Gradecki, who seems to be favoring Advent. That company is reportedly ready to pay a hefty premium for shares it buys from Mr Gradecki and his wife.
If Advent were to announce a call for shares, ordinary Eko shareholders could receive as much as zł.4 per share, and Mr Gradecki, zł.6 per share, Parkiet reported. Together with his wife, he controls 55 percent of the company, in a stake estimated at zł.129 million.
According to analysts, now is a good moment for a takeover, because the company’s valuation is relatively low. A single share in Warsaw Stock Exchange-listed Eko Holding was priced at zł.4.80 as WBJ went to press, but the company has been trading at an average of zł.3.77 over the last six months.
Eko Holding owns around 300 stores and its capitalization amounts to zł.233 million. Its annual revenues have generally exceeded zł.1.5 billion over the last few years.
From Warsaw Business Journal by Gareth Price
Donald Tusk the social democrat?
BY Remi Adekoya
The growing importance of the Arctic Council
BY Stratfor Global Intelligence