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Consolidation and reorganization in BEST Group

  • BEST Group raised its share in the BEST II non-standard closed-end securitization investment fund (BEST II NSFIZ) from 17% to 100%.
  • The company will be redeeming the majority of the treasury shares held.

 

BEST Group, one of the leading companies in the debt management market in Poland, finally took over BEST II NSFIZ, raising at the same time its share in this fund from 17% to 100%.

 

BEST II NSFIZ is one of the largest Polish securitization funds, investing in debt portfolios. This fund was established in 2008 and has reinvested all profits so far. The total nominal value of the debt portfolios owned by BEST II NSFIZ amounts to ca. PLN 2.1bn. According to the most recent valuation (i.e. 31 October 2014), the net value of the assets of this fund amounts to PLN 95.5m. The total price for 83% of the BEST II NSFIZ certificates acquired was therefore set at ca. PLN 79.2m.

 

“By taking over BEST II NSFIZ we took over, de facto, the debt portfolios generating the stable cash flows. This is the low-risk transaction, for we are familiar with the portfolios that belong to this fund. Gaining full control over BEST II NSFIZ significantly increases the Group assets and it will show the virtual scale of our activity, and the profits of the management of receivables belonging to the fund will be transferred in full to BEST Group. The transparency of our financial statements will also be improved,” said Krzysztof Borusowski, president of BEST.

 

BEST Group currently owns 100% of the BEST I NSFIZ and BEST II NSFIZ investment certificates (both funds will be therefore included in the full consolidation) and its share in BEST III NSFIZ amounts to 50% (consolidation by means of the equity method). All three funds are managed by BEST TFI while BEST S.A. handles the debt portfolios held.

 

The management board and the BEST key shareholders will also be dealing with 650,000 company treasury shares. They constitute 11.11% of the share capital. BEST acquired these shares as the result of transformations made in 2006 (fusion with Trzeci Polski Fundusz Rozwoju Sp. z o.o.). The Extraordinary General Meeting, which will make the decision on the redemption of the majority of these shares, has been convened for 16 December 2014. The remaining shares (13,304 shares) will be used under an incentive program carried out in the Company.

 

In the future, the Society could theoretically sell a block of treasury shares, raising additional funds for development in this way and concurrently increasing the free float, i.e. the portion of shares in the free float. However, we decided to redeem these shares for two reasons. Firstly, taking into account the very low current debt ratio of BEST Group, the implemented bond issue program is the most effective way of financing further development. Secondly, due to tax reasons, any issue of new shares will be a more advantageous solution for the Company than selling the existing treasury shares,” said Krzysztof Borusowski.

 

After the redemption of treasury shares, the BEST share capital will be divided into 5,213,305 shares.

 

BEST Group, one of the leading companies in the debt management market in Poland, finally took over BEST II NSFIZ, raising at the same time its share in this fund from 17% to 100%.

 

BEST II NSFIZ is one of the largest Polish securitization funds, investing in debt portfolios. This fund was established in 2008 and has reinvested all profits so far. The total nominal value of the debt portfolios owned by BEST II NSFIZ amounts to ca. PLN 2.1bn. According to the most recent valuation (i.e. 31 October 2014), the net value of the assets of this fund amounts to PLN 95.5m. The total price for 83% of the BEST II NSFIZ certificates acquired was therefore set at ca. PLN 79.2m.

 

“By taking over BEST II NSFIZ we took over, de facto, the debt portfolios generating the stable cash flows. This is the low-risk transaction, for we are familiar with the portfolios that belong to this fund. Gaining full control over BEST II NSFIZ significantly increases the Group assets and it will show the virtual scale of our activity, and the profits of the management of receivables belonging to the fund will be transferred in full to BEST Group. The transparency of our financial statements will also be improved,” said Krzysztof Borusowski, president of BEST.

 

BEST Group currently owns 100% of the BEST I NSFIZ and BEST II NSFIZ investment certificates (both funds will be therefore included in the full consolidation) and its share in BEST III NSFIZ amounts to 50% (consolidation by means of the equity method). All three funds are managed by BEST TFI while BEST S.A. handles the debt portfolios held.

 

The management board and the BEST key shareholders will also be dealing with 650,000 company treasury shares. They constitute 11.11% of the share capital. BEST acquired these shares as the result of transformations made in 2006 (fusion with Trzeci Polski Fundusz Rozwoju Sp. z o.o.). The Extraordinary General Meeting, which will make the decision on the redemption of the majority of these shares, has been convened for 16 December 2014. The remaining shares (13,304 shares) will be used under an incentive program carried out in the Company.

 

In the future, the Society could theoretically sell a block of treasury shares, raising additional funds for development in this way and concurrently increasing the free float, i.e. the portion of shares in the free float. However, we decided to redeem these shares for two reasons. Firstly, taking into account the very low current debt ratio of BEST Group, the implemented bond issue program is the most effective way of financing further development. Secondly, due to tax reasons, any issue of new shares will be a more advantageous solution for the Company than selling the existing treasury shares,” said Krzysztof Borusowski.

 

After the redemption of treasury shares, the BEST share capital will be divided into 5,213,305 shares.

 

BEST: Company Overview

 

BEST S.A. has been listed on the Warsaw Stock Exchange since 1997, as a company specialising in the trading and managing of non-performing debts. The BEST Group actively invests in debt portfolios (especially in the field of banking) with the use of securitisation funds, as well as providing debt collection services for third parties: banks, telecommunication operators, power companies, and other mass service providers.

 

BEST is also the sole shareholder of BEST TFI, which obtained its licence to operate from the Polish Financial Supervision Authority (KNF) in 2008. The combination of expertise in the fields of debt collection and that of the establishment and management of investment funds has helped the entity to concentrate all the elements of its business model within one capital group.

 

BEST TFI currently manages three securitisation funds: BEST I NSFIZ, BEST II NSFIZ and BEST III NSFIZ, the assets of which include debt portfolios having a total par value of PLN 8.7 billion (as at the end of September 2014).

 

***

For more information visit www.best.com.pl or contact:

 

Krzysztof Woch

NBS Communications

tel: 22 826 74 18 / mobile: 516 173 691

email: kwoch@nbs.com.pl

Maciej Szczepaniak

NBS Communications

tel: 22 826 74 18 / mobile: 514 985 845

email: mszczepaniak@nbs.com.pl

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