Vistula-Bytom merger to be renegotiated?

WSE-listed fashion retailers Vistula and Bytom might adjust the share parity in the planned merger, as Bytom sales are lower than estimated. “Based on the monthly sales reports, it seems that at some points the assumptions presented by the board when preparing the valuation could be too ambitious. We must wait for hard data and re-verify the assumptions of both companies, compare them with the actual results,” Vistula CEO Grzegorz Pilch said. He added that he believes that a compromise can be reached. Both companies currently await antitrust watchdog UOKiK approval for the merger. Back in November, UOKiK extended its enquire by 4 months and market analysis has been ordered. According to Pilch both entities are relatively small and have some 14 percent of the market share combined so he is optimistic regarding the merger. According to the merger agreement, the share parity has been set at 0.82, meaning that for every Bytom share, its shareholders would receive 0.82 Vistula share. In 2016, Vistula had PLN 35.2 million net profit, while its peer Bytom had PLN 12.4 million in net profits. Vistula is worth some PLN 570 million, according to its share price, while Bytom capitalization is at some PLN 194 million.