Situation on 12th December 2018
In terms of transaction value, in 2018, small and medium-sized so-called Mid-Caps (value PLN 100-400 million) prevailed. The largest transaction of the previous year was the acquisition by PKN Orlen of 37% of shares in Czech Unipetrol for the amount of approximately PLN 4.2 billion. Among transactions with the disclosed price in 2018, we recorded 41 small transactions, 12 Mid-Caps and 10 large transactions, including 7 worth over PLN 1 billion. There were no enormous transactions in 2018, as in 2016 (sale of Allegro and sale of the PEKAO block of shares, both worth over PLN 10 billion).
Last year, PE funds were present in every area of the Polish economy – in their portfolios prevailed companies from the Media/IT/Telecom industry and from the industrial sector. Despite high activity in 2017, many funds did not stop at buying and continued acquisitions (acquisition by the Fund belonging to Abris Capital Partners – share package of the Polish ITP company and a large takeover of 38% Unilink shares by the Enterprise Investors Fund). The due diligence process in the abovementioned case was organized using the FORDATA Virtual Data Room system.
Looking at the situation on the domestic market, we expect in the upcoming 2019 M&A transactions with a value and number at a level close to the passing year. Low interest rates or economic stability in our region is conducive to further investments. According to economists, everything indicates that the interest rate will not increase in the following year. Interest rates will remain low, which will have a positive impact on the country’s economy and investment demand.
The use of Virtual Data Room technology, which guarantees secure access to confidential documents to the other party during the transaction process, is becoming more and more popular, especially after the entry into force of the GDPR. According to publicly available data, 40% of transactions in 2018 were organized using the Virtual Data Room system, including those of prestigious cross-border (compared to 33% in 2017).
FORDATA is a pioneer on the Polish capital market. Based on Virtual Data Room technology, we support our clients in managing documents and communication during complex transactional processes, ie. M&A, IPO transactions, private equity investments, restructurings, projects associated with obtaining ﬁnancing and privatizations in Poland and other countries of Central and Eastern Europe.
FORDATA systems increased safety and efficiency of hundreds of different types of transactions with a total value of over PLN 35 billion.
Navigator Capital along with Dom Maklerski Navigator (Navigator Brokerage House) is the leading independent financial adviser, specializing in mergers and acquisitions and public and private issues of stocks and bonds.
During 12 years of its market presence, Navigator Capital Group conducted over 70 transactions, of over 6 billion PLN total value.
Through cooperation with international network of advisory firms associated in the Pandion Partners, Navigator Capital effectively handles international transactions.