Eastern Europe's leading systems integrator Prokom Software will buy up to 33% of Polish peer Softbank for as much as zł. 75 million ($17.8 million), Softbank said last week.
Prokom, which already has a 10% stake of Softbank, signed an initial agreement to buy 10-33% of the smaller Softbank at zł. 13 per share, which was Softbank's closing price on Monday.
"Prokom's intention is to assume the role of Softbank's strategic investor," Softbank said in a statment.
Analysts said Prokom's effective takeover of Softbank would boost its chances of landing lucrative computer integration contracts with Poland's largest state-owned bank Powszechna Kasa Oszczźdności Bank Polski (PKO BP) and top insurance group Powszechny Zakład Ubezpieczeń (PZU).
"The price could be seen as low if Softbank wins these huge contracts," said Włodzimierz Giller, an analyst at Erste Securities in Warsaw.
The deal envisages Softbank's chief executive Aleksander Lesz, who owns about one-third of the firm's shares, selling his stake over time to Prokom, whose market capitalization stands at $370 million.
Prokom later released a statement saying that it decided to become further involved in Softbank to focus on services and software for the banking sector.
"The signed agreement forms the basis for strategic cooperation between the firms in computer project sales, optimizing financing costs and using the synergy of planned capital and operational links," Softbank said.
Softbank has helped to modernize computer systems in Poland's mostly foreign-owned banking sector, but its results have soured over the last few quarters as the financial sector has largely finished restructuring.
Its shares are trading near all-time lows, having shed more than half of their value so far this year and nearly 95% since hitting all-time highs in early 2000.
Analysts said the deal would solidify Prokom's leading position on the computer integration market and help it tap new financial sector contracts with Softbank's expertise.
Analysts also applauded Prokom's plans to slowly take over Lesz's stake, which allows Softbank to avoid having to call a public tender for its shares and having to dish out more cash.
The deal also saves face for Prokom, which bought its 10% stake in Softbank for some zł. 130 million ($31 million) two years ago when the firm's shares began their free fall.
- Reuters
