Shares prescription for Polfa?
Ivax is poised to take total control of Polfa Kutno and become the fourth foreign firm to be listed on the Warsaw Stock Exchange (WSE).
The company already owns 25 percent of Polfa and will offer current shareholders a stock swap in exchange for the remaining 75 percent. The securities commission has suspended trade of Polfa's shares, fixing their price at zł.340 per share.
Ivax is a major manufacturer of generics, and generated revenues of $1.42 billion in 2003 by sustaining its expansion policy of takeovers of local drug producers. The Florida-based corporation has already bought out its South American partners. Now, it is clearly aiming to increase its commitment in the CEE.
According to analysts, an ability to trade shares of a major American pharmaceutical on the WSE will add prestige to the Polish bourse. Despite the low liquidity of the WSE there seems to be no concern that Ivax's presence would become only nominal.
"Turnover of a company of this size will certainly be high," said BPH bank analyst Piotr Banasik. He is confident that investors will welcome the opportunity for direct investment in a global corporation.
Decision makers at Polfa Kutno have high expectations for the transaction. The company is running at just 60 to 70 percent of its production capacity. New production orders from headquarters could improve that. President of the board at Polfa Kutno, Janusz R. Guy, is even suggesting that employment prospects will increase.
"Joining international structures of the Ivax group will open new markets for our products," he claims.
The one obstacle to the move could be shareholders' good will-or rather lack of it, should they choose to refuse Ivax's offer of a share exchange. However, the Americans seem to have their minds made up.
"If this call for an exchange fails, Ivax will post another one. They will not let go of this one," says Banasik.
The company already owns 25 percent of Polfa and will offer current shareholders a stock swap in exchange for the remaining 75 percent. The securities commission has suspended trade of Polfa's shares, fixing their price at zł.340 per share.
Ivax is a major manufacturer of generics, and generated revenues of $1.42 billion in 2003 by sustaining its expansion policy of takeovers of local drug producers. The Florida-based corporation has already bought out its South American partners. Now, it is clearly aiming to increase its commitment in the CEE.
According to analysts, an ability to trade shares of a major American pharmaceutical on the WSE will add prestige to the Polish bourse. Despite the low liquidity of the WSE there seems to be no concern that Ivax's presence would become only nominal.
"Turnover of a company of this size will certainly be high," said BPH bank analyst Piotr Banasik. He is confident that investors will welcome the opportunity for direct investment in a global corporation.
Decision makers at Polfa Kutno have high expectations for the transaction. The company is running at just 60 to 70 percent of its production capacity. New production orders from headquarters could improve that. President of the board at Polfa Kutno, Janusz R. Guy, is even suggesting that employment prospects will increase.
"Joining international structures of the Ivax group will open new markets for our products," he claims.
The one obstacle to the move could be shareholders' good will-or rather lack of it, should they choose to refuse Ivax's offer of a share exchange. However, the Americans seem to have their minds made up.
"If this call for an exchange fails, Ivax will post another one. They will not let go of this one," says Banasik.
