Strzelec to buy Brok debts after raising banks loans and issuing new shares

Browary Strzelec, a brewery quoted on the Warsaw Stock Exchange (WSE) bought from the bank Pekao S.A. the debts of another brewery, Brok, which owed the bank zl. 95 million. Strzelec paid zl. 45 million and received permission to take over the production assets of Brok. The transaction will be completed as soon as Strzelec finalizes its new share issue, planned for the forth quarter, and can negotiate new bank loans. The purchase of Brok's debts are part of merger preparations between the two breweries, which will take place probably next month. October should also see the end of preliminary restructuring inside the group, to be followed by work on developing a new marketing strategy. Adam Brzozowski, Strzelec chairman said, "From November 1, there will be a new player on the beer market, Brok - Strzelec Polish Breweries," he told Prawo i Gospodarka. Only once the company confirms that they will maintain a 4% market share will they actively look for a new investor. (Prawo i Gospodarka, p. 15) A.D.