POLAND: Listed confectioners Mieszko and Jutrzenka hatching merger plans?
The next few months are likely to see a decision on a potential merger between listed Polish confectioners Mieszko and Jutrzenka, reports Interfax. Mieszko president Tomasz Gajdzinski is quoted as saying that "Within 2-3 months we will near a decision on whether a merger makes sense or we will have to seek other solutions," revealing his company's need to take some kind of strategic step to secure its long-term growth.
Earlier this year, Mieszko announced its intention of hiking sales revenue by 30-35 % and net profits by 45-55% this year by growing exports, developing the company's bespoke distribution network and launching new products. To help it meet these ambitious targets, Mieszko has already bought 100% of its smaller rival Raciborzanka for PlZ13.8m (US$3.3m), adding a line of wafers to its product portfolio.
Mieszko's shares remained steady on the news of a potential merger with Jutrzenka, while the latter's shares inched up 0.3%. Jutrzenka would bring a clear balance sheet into the partnership, while Mieszko would bring debts of PlZ80m and credits of PlZ40m.
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