Poland's antitrust watchdog UOKiK issued its consent for the purchase of a part of Polimex's subsidiary ZREW Oddzial Transformatorow by Highlander International Luxembourg fund. Highlander International is set to buy a plant producing and maintaining oil power transformers, the statement showed. The price was not disclosed. Separately, according to daily Parkiet citing unofficial sources, the company is likely to sign the so-called termsheet with its financial creditors in the last week of October or the first week of November. According to the daily, the document, which is a shortened version of the restructuring deal, will include information concerning planned debt-to-stock conversion and dates of payments of the part of the debt that will not be converted into new issue shares.
Our view:
The news is positive and leads us to believe Polimex could successfully finalize part of the divestiture process. After successfully pushing through the equity issue at the last EGM, signing the restructuring deal is likely to take place the weeks ahead, which should not surprise the market.