K-Holding submits bid to buy Gekoplast

Italian company K-Holding has made a non-binding bid to acquire 100 percent shares of the WSE-listed polypropylene cellular boards producer Gekoplast. K-Holding offers PLN 16.5 per share. On Tuesday, at the end of the trading sessions, Gekoplast stock was priced PLN 12.3 apiece. The deal is subject to due diligence process. K-Holding is the owner of Karton, Europe’s largest company in the sector, and is hoping for significant synergies between Karton and Gekoplast. Gekoplast's Management has granted K-Holding exclusivity until October 15, 2017, for conducting the due diligence of the company. The date could be extended further if the offer is not lower than PLN 16.55 apiece. The company’s majority shareholders, Capital Partners Investment I FIZ and CP FIZ which control 75.08 percent of the company's stock have accepted the offer. “We see significant synergies and positive aspects that could be part of Gekoplast's further development. After reviewing strategic options, we see the offer as a possibility for the company’s further development,” Piotr Górowski, CEO of Gekoplast said. Gekoplast is the largest producer of polypropylene panels in the CEE region and the fifth-largest in Europe.