Vistula&Wólczanka attempts to buy W.Kruk
The recent acquisition of clothing company Artman by stock-listed LPP has put pressure on its on competitors. As a result, the management of Vistula&Wólczanka (V&W) revealed plans of acquiring jeweller-clothing group W. Kruk, but the potential take over target immediately denied such plans. V&W announced a call for a 66% stake in W. Kruk for zł.23.7 per share.
"This is a relevant valuation, in line with the law. We should wait for the reaction of the market. The transaction is based on calculations and not emotions," said Rafał Bauer, president of V&W. He said that the price might be increased if necessary, but the company will not push to carry out the acquisition at any cost.
The deal will be successful if V&W purchases 51% of shares and this depends on financial investors, as Wojciech Kruk is the largest investor controlling 22.3% of the shares. "Due to the low price, the call might not be successful. For V&W it would be an attractive deal. [...] But one cannot clearly see significant benefits for W. Kruk shareholders," said Bartek Dębowski, analyst with DM BGŻ.
Wojciech Kruk was surprised with the information and announced this is an attempt at a hostile take over, but V&W directors claim they only plan to establish an even stronger group of both companies. (Puls Biznesu, pp. 1, 6-7; Parkiet, pp. 1,2,3; Rzeczpospolita, p. B3) M.M.
