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BEST and Kredyt Inkaso closer to a merger

The Management Boards of BEST and Kredyt Inkaso, the two leading players in the Polish debt collection industry, opened negotiations on merging both companies. The merger will pave the way for establishing a strong Polish group on the debt market in Europe.

 

BEST and Kredyt Inkaso are among the most experienced and largest companies in the debt collection industry in Poland. The shares of both companies are listed on the Warsaw Stock Exchange. Following the recent investments, BEST already holds, directly and indirectly through the company Gamex, nearly 33% of the shares of Kredyt Inkaso, thus making BEST the major shareholder of the company. On Monday, 28 September 2015, the Management Boards of the companies concluded an agreement, whereby they opened negotiations on the merger.

The agreement provides that the merger will be carried out by way of transferring all the assets of Kredyt Inkaso and Gamex to BEST, the acquiring company (merger by acquisition). The detailed terms of the merger will be determined in the course of the work and analyses to be undertaken within the framework of the Cooperation Agreement.

 

"The merger of BEST and Kredyt Inkaso will contribute to increasing the scale of business operations and market share, and consequently to strengthening the position of the merged companies on the European debt recovery market. In other words, by acting together we can establish a strong Polish group on the debt market, not only in Poland but also in Europe", said Krzysztof Borusowski, President of BEST. "BEST and Kredyt Inkaso make an excellent match. This merger means more than mere economies of scale for us, it also helps combine experience from various sectors of the market. For example, whereas we have been mainly engaged in receivables from the banking market, Kredyt Inkaso has operated in such sectors as the telecommunications market. Our experience in obtaining the most effective financing in our sector constitutes another strong asset, while Kredyt Inkaso has a track record in successfully expanding into foreign markets. This illustrates our strengths, which thanks to the merger can be used in a larger and more efficient company", he added.

 

"By combining the potential of both companies, we can achieve a number of synergies – both in terms of possible expansion and efficiency. While conducting these negotiations, we will seek to develop such conditions of the merger that will benefit both companies and their shareholders", said Paweł Szewczyk, President of Kredyt Inkaso.

 

The list of objectives to be achieved thanks to the merger, although not exhaustive, includes:

-      optimization of capital sources,

-      enhancing the offer addressed to creditors and debtors,

-      streamlining the recovery processes,

-      creating an innovative ICT environment for operating divisions through the selection and application of the best technical solutions,

-      cost optimization.

 

In addition to agreeing on merger conditions by the Management Boards of both companies, the implementation of the merger will be contingent on obtaining the permits and approvals, as required by law, including the approval of concentration by the President of the Office of Competition and Consumer Protection, the approval of the information memorandum to be drawn up on the opportunity for the issue of merger shares by BEST, by the Polish Financial Supervision Authority, as well as on adopting the resolutions relating to the merger by the General Meetings of the merging companies.

 

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General information about BEST

 

BEST SA has been listed on the Warsaw Stock Exchange since 1997. The company is engaged in trading in and management of non-performing debt portfolios. BEST Group actively invests in debt portfolios (mainly debts to banks), while taking recourse to securitization funds, and also providing debt collection services for third parties, including: banks, telecommunication operators, power companies, and other mass service providers.

BEST is also the sole shareholder in BEST TFI, which manages investment funds with assets totalling PLN 963 million (as at 30 June 2015). The combination of expertise in the field of debt collection, on the one hand, and the creation and management of investment funds, on the other, made it possible to bring together all the elements of the business model in one group.

 

The total nominal value of both its own and third-party claims managed by BEST is approximately PLN 9.8 billion (as at 30 June 2015).

 

In 2014, BEST Group generated PLN 58.9 million net profit attributable to the shareholders of the Company, whereas its operating income amounted to PLN 124 million.

 

 

For further information please visit our website www.best.com.pl or contact:

Krzysztof Woch

NBS Communications

tel. 22 826 74 18 / mob. 516 173 691

e-mail: kwoch@nbs.com.pl

Maciej Szczepaniak

NBS Communications

tel. 22 826 74 18 / mob. 514 985 845

e-mail: mszczepaniak@nbs.com.pl

 

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