Trans Polonia's billion-dollar offensive. A Polish company wants to take over a foreign giant for PLN 2 billion

Trans Polonia wants to take part in the process of acquiring a foreign company operating in the transport industry for an estimated value of approximately PLN 2 billion, the company said in a press release.

As part of its growth strategy through acquisitions, Trans Polonia conducted preliminary talks regarding the possibility of acquiring a foreign company and, in the course of the process, concluded a non-disclosure agreement with the entity conducting the process (NDA Non-Disclosure Agreement), submitted a non-binding offer (NBO) for the acquisition of the target, and received official confirmation of qualification to the next stage of the transaction process.

The company that Trans Polonia wants to acquire is a capital group operating in the transport sector on international markets and generates revenues of EUR 450 million annually while maintaining standard profitability parameters for the transport and logistics industry.

It was added that an important step in the process will be to conduct a detailed due diligence including legal, financial, tax, operational and regulatory analysis of the target. The results of the due diligence will constitute the basis for the company's management board to make a decision to submit a binding purchase offer.

Trans Polonia assumes that the financing of the transaction will be based on bank financing (bank or syndicated loan), subordinated debt financing (private debt), and proceeds from the possible sale of the company's own shares (previously acquired for the purpose of further acquisitions).

However, the structure of potential financing does not assume an increase in the company's share capital and the issue of new shares.

As part of preparations for financing the transaction, the company conducted preliminary talks with financial institutions, including commercial banks, the Polish Development Fund and selected private debt funds.

“The talks confirmed the feasibility of the company's financing concept, with the reservation that the final financing structure will depend on the results of the due diligence and confirmation of the financial condition and operational results of the target at subsequent stages of the process,” the release said. (PAP Business)

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