BEST will not choose an investor who could acquire a minority, non-controlling stake of new issue shares in the first half of this year as a result of turmoil on the financial market caused by the coronavirus pandemic. Talks with potential investors are to continue.
In the last quarter of 2019, the Management Board of BEST started talks with selected financial investors interested in acquiring a minority, non-controlling stake of the new issue of shares. This extra supply of capital for the Company was to be used to further the expansion and development of BEST Capital Group through investments in new claim portfolios. Only selected renowned funds were invited, those that understand the non-performing debt management industry.
– BEST is in a very good financial situation, and BEST Group’s debt ratio is one of the lowest in the industry. Despite the global coronavirus pandemic that has been spreading since March, we are operating with high efficiency. We continue to achieve good operation results and meet the goals set for this year. Unfortunately, as result of the effect that the pandemic has had on the economic environment and the sentiment on the capital market, we will not be able to choose an investor by the end of the first half of this year. We will continue our talks with investors, but their dynamics will be lower than before the outbreak of the pandemic – said Krzysztof Borusowski, President of the Management Board and the majority shareholder of BEST.
– We can expect an increase in the share of non-performing loans in the Polish banking sector, and the economic effects of the coronavirus pandemic may further increase the supply of this type of debt. Thanks to major investments in technology made in recent years, BEST has the operational capacity to cope with a significant increase in the volume of cases being processed. Raising more capital would certainly enable our Group to grow and strengthen BEST’s market position in Poland and abroad – added Krzysztof Borusowski.
Krzysztof Borusowski holds nearly 18.47 million shares of BEST, which account for 80.2% of the Company’s share capital. Marek Kucner, Vice-President of the Management Board of BEST, holds nearly 3.25 million shares, accounting for 14.1% of the share capital.
When deciding to start negotiations with investors, both Krzysztof Borusowski and Marek Kucner declared their long-term commitment to the growth of BEST and said they were not going to sell the shares they hold in the Company.
Rothschild & Co. will be providing advice to BEST in the process of selecting a new investor.