PMPG SA submitted a bid to buy PWR. Better tender prospects for the company
Platforma Mediowa Point Group (WSE: POINTGROUP (PGM)) submitted to the Ministry of Treasury its bid to buy shares in Przedsiębiorstwo Wydawnicze Rzeczpospolita which holds, among others, 49% of shares in Presspublica, the publisher of “Rzeczpospolita” and “Parkiet” daily newspapers.
As of the date of submitting the bid, PMPG’s mathematical chances have increased considerably. Currently, only two bidders remain in the tender.
Final bid after PWR due diligence is lower than anticipated in initial PMPG SA estimates. Due diligence revealed a whole range of risks related to the purchase of PWR, emphasized Michał M. Lisiecki, PMPG President. Therefore, the price quoted in the final bid submitted by PMPG has been verified in relation to the initial offer. “Lower price is intended to protect PMPG’s shareholders against effects of such risks” – stresses Lisiecki. - “What is more, it will enable us to verify the original objectives laid down for the issue, which will effect in the decreased dilution”.
The company, upon obtaining consent of the Minister of the Treasury, is planning to start negotiations with Mecom, he adds. These talks would allow to eliminate some of significant risks revealed during due diligence. “As a result, we could develop a joint development strategy for Rzeczpospolita” – emphasizes PMPG SA President.
Mecom, the British investment fund (LSE: MEC) holds 51 percent of shares in Presspublika - the publisher of “Rzeczpospolita”, “Parkiet” and “Życie Warszawy” daily newspapers and the main asset of the enterprise undergoing privatisation.
In January 2009, PMPG SA was added to the list of four entities allowed by the Ministry of Treasury to conduct due diligence of Przedsiebiorstwo Wydawnicze “Rzeczpospolita”, a minority shareholder of the publisher of “Rzeczpospolita” daily. Ultimately, bids submitted to the MT included those of Platforma Mediowa Point Group SA and Zjednoczone Przedsiębiorstwa Rozrywkowe. Respekt Media, a Czech investor withdrew from the tender. Axel Springer Polska also failed to submit its offer.
PMPG SA declared its willingness to buy shares in PW Rzeczpospolita already at the end of 2007. In October 2008, PMPG SA Management Board passed a resolution on establishment of a special purpose vehicle, Point Group Rzeczpospolita and resubmitted the letter to the Ministry of Treasury confirming its willingness to conduct the transaction. On December 31, PMPG SA as one of five bidders submitted its opening bid to buy PWR shares to MT.
Publishing of the opinion-forming medium is one of the elements of Platforma Mediowa Point Group strategy.
