Galenica-Silafarm seeks strategic investor

In 2005 the company posted a net profit of zł.1.6million. It has been negotiating with Torfarm (10% market share, a net profit of zł.3.2 million in Q1 this year) and the transaction seemed almost sealed since it was expected that at the general shareholders meeting this Saturday the shareholders would sign a contract. Surprisingly however, Galenica-Silafarm has received two more attractive offers. One from the Polish Pharmaceutical Group (PGF, 20% market share, in Q1 this year a net profit of zł.16.1 million), the other from Prosper, which controls 10% of the market and posted a net profit of zł.3.8 million. According to PGF's preliminary calculations, the real value of the company's shares should be about zł.3,350, whereas, according to Puls Biznesu, Torfarm is offering only zł.1300 per share, 92% of which would be paid in Torfarm's shares. Although small shareholders are not so keen to choose Torfarm, the coming general meeting is expected to entrust the decision to the board, which would strongly favor Torfarm. (Puls Biznesu, p.11; Parkiet p.1,4) J.L.