According to Saturday’s Parkiet. GTC has withdrawn from the transactions of buying an office building in Moldova and buying a land for office building in Sofia, Bulgaria after performing the due diligence. These projects were announced in June. GTC is not negotiating any new projects in Moldova at this point.
Our view: The estimated value of the two projects on GTC’ valuation has been below PLN0.5 per share while the cash planned to be spent on these projects can be deployed somewhere else. In fact, we highlight GTC’s prudent approach of not pursuing deals, which may be risky and hence represent a risk to shareholders.