Gastel: Budopol's takeover nears

2010-04-13

Gastel Zurawie and shareholders of PGMB Budopol have agreed to the preliminary terms and conditions under which the company is to be taken over, Parkiet reported.
In line with the arrangements, Gastel has been given a 150 days of exclusive right to carry out the transaction. At the same time, both companies are to do their best to ensure the takeover is finalised by the end of September 2010. Currently, Budopol is undergoing a financial and legal due diligence; it is to be completed in April. Thereafter, an investment agreement will be signed. Based on plans, the acquiring company in exchange for Budopol will pay both in shares issued as part of a share capital increase as well as in cash which it intends to raise through a share issue planned for mid-2010. The offer, which will be worth PLN 50-100m (€12.9-25.8m) is to be made available primarily to institutional investors. The decision on how large the issue will be is to be made on 4 May 2010 during a General Shareholders Meeting of Gastel.

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