EM&F books a spot in Ukraine

Two companies belonging to the Empik Media and Fashion (EM&F) group have signed takeover agreements with firms in Ukraine. EM&F paid over $11 (zł.33.9) million in total for the two acquisitions.

"We are now at the forefront of the attractive market of our eastern neighbor," said Maciej Dyjas, president of EM&F's management board.

According to the first deal, book retailer Empik will gain a controlling stake of 65 percent in Bukva, which operates a chain of 27 bookstores under the same name in Ukraine. Empik doled out $6.38 (zł.19.6) million for the controlling stake.

EM&F's children's products retailer Smyk also acquired a 65-percent controlling stake in Partiet Servis Retail, which will give it control over two Kinderland shops in Kiev. Kinderland retails products for children and mothers. Smyk paid out $5 (zł.15.4) million for the stake.

Two weeks ago EM&F reported that it submitted an issue prospectus to the Security and Exchange Commission (KPWiG), as a group of the company's minority shareholders plan to sell at least 19 percent of their shares in Q4 this year. The group of private equity funds had originally invested their money in Eastbridge Group, NFI EM&F's main shareholder. Those shares were systematically converted into EM&F shares, which the shareholders believe have now matured.

"The offering will be directed towards financial institutions as well as individual investors," said Dyjas. "Thanks to this, the recognizability of the company will increase significantly, our strategy and prospects will be known by a wider spectrum of investors, and the liquidity of the company's shares on the WSE should improve."