News Parkiet

Information technology

Timing favors ABG shareholders

in Ster-Projekt stock swap

Prokom Software IT group and other shareholders of the privately-held ABG software company stand to gain millions of zlotys because of the timing of planned merger with the publicly traded Ster-Projekt. Warsaw-based ABG has much smaller net assets, but its shareholders will own almost 73 percent of the new company after the stock-swap with Ster-Projekt, because of different valuation methods. CA IB Financial Advisors, which helped close the deal, valued ABG at 380 million zloty based on expectations of future cash flow.

To estimate the value of Ster-Projekt, CA IB decided to use its stock market value of just 120 million zloty. However, its stock price was near an all-time low at the time because of massive, 43-million zloty charges. Ster-Projekt could be worth more if it achieves this year's profit target of 6 million zloty.

In December of last year Prokom paid PLN 103 million for its 41 percent stake in ABG, which valued the company at just over 130 million zloty.

Metals

Investors wait for refunds after Złomrex IPO

Retail investors who signed up to buy 180 million zloty worth of shares sold by Złomrex SA will have to wait a few days to get their money back after Częstochowa-based scrap metals trading group pulled its 260 - 360 million zloty IPO late Thursday citing unfavorable situation on Central European stock markets. Earlier that day the company, which has annual sales of more than 1.4 billion zloty, said it was outbid in its attempt to buy assets of Huta Batory steel plant by Polish businessman Roman Karkosik. Those who took margin loans to buy Złomrex, will have to pay interest at regular rates, sources close to the situation told PARKIET yesterday.

Banking

BRE rated 'reduce' at Millennium

Analysts at Millennium Dom Maklerski raised their rating for Commerzbank unit BRE Bank from 'neutral' to 'reduce' after a rally sent its shares sharply higher. According to Millennium's equity research analyst Marcin Materna, recent management reshuffle and the ouster of BRE's aggressive CEO, Wojciech Kostrzewa, may hurt its efforts to increase lending.

The rating was issued when the stock was trading at 133 zloty compared with yesterday's closing price of PLN 124.