The Management Board of BEST plans to conduct negotiations with selected financial investors interested in acquiring a minority, non-controlling stake of the new issue of shares. The money obtained in this way will allow BEST Capital Group to maintain its dynamic growth and expand by investing in new claim portfolios.
– For a long time, we have signalled that BEST may decide to increase its share capital, and we are convinced that now is the best moment to do so. A good financial condition, efficient operations, diverse financing sources and a strong market position provide a solid foundation for continued expansion. In the coming years, we expect to see a higher supply of claims. At the peak of the economic cycle, the share of non-performing loans in the Polish banking sector remained high at approximately 6-7%, while in Germany or the Czech Republic it was around 2%. We expect this trend to reverse, and a capital increase of BEST Group in this phase will significantly improve our investment prospects. Additionally, thanks to major investments in technology made in recent years, we are very well prepared for expanding the scale of our operations – said Krzysztof Borusowski, President of the Management Board and majority shareholder of BEST.
– BEST is in a very good financial situation and has a sound balance sheet structure. We have achieved high return on equity and operating efficiency ratios, and BEST Group’s debt ratio is among the lowest in the industry. It is no secret that in the next three years we expect significant bond redemptions, but we have a history of arranging our financing in such a way that the repayment of liabilities can be secured well in advance. A capital injection from a new investor will allow us to finance the continued dynamic growth of BEST Group – added Marek Kucner, Vice-President of the Management Board of BEST.
Since 2011, BEST has been an active participant in the market of corporate bonds, offered to both institutional and retail investors. As part of public issues in 2014-2018 alone, the Company raised PLN 590 million, of which PLN 130 million has already been repaid. The Group has consistently recorded a high operating income, and the limit of its bank financing is being constantly increased. BEST also supports its growth through funding provided by the majority shareholder and President of the Company. BEST has been listed at GPW for 22 years, but so far it has used financing from external investors acquiring new shares only to a minimal extent.
Krzysztof Borusowski holds nearly 18.47 million shares of BEST, which account for 80.2% of the Company’s share capital. Marek Kucner holds nearly 3.25 million shares, accounting for 14.1% of the share capital.
– I am committed to long-term growth of BEST, and the same can be said of Marek Kucner, a fellow shareholder and Vice-President of the Company. We are not planning to divest, but are willing to invite a financial investor to acquire a significant minority stake of shares in BEST. We will invite only selected renowned funds, in particular those that understand the non-performing debt management industry – said Krzysztof Borusowski.
Rothschild & Co. will be providing advice to BEST in the process of selecting a new investor.