Emperia Holding SA has extended until 26 September 2011 the deadline for submission of non-binding bids by investors interested in acquiring its retail business. The extension follows the recommendation of the investment advisor, KPMG Advisory, and the request of several investors, intending to take part in the transaction, which—due to the holiday period—had problems putting together their teams to draw up bids. The sale of Emperia’s retail business has attracted both industry and financial investors. While several dozen firms have expressed their interest in the purchase, at lease a dozen or so will be shortlisted to take part in the next stage of the auction process.
The purpose of the auction that commenced in June is to select an investor ready to acquire Emperia’s retail business on attractive terms and conditions. The completion of the process is scheduled for the first half of 2012. The extension of the period in which to file bids will not affect the proposed deadline for execution of the final agreement with the selected investor.
The transaction covers the retail chains of Stokrotka, Delima, Społem Tychy, and Maro Markety, which operate 233 outlets among them. In the opinion of Emperia’s Management Board the value of these companies (excluding real property) is at the level of PLN 900 million. If the sale goes through, Emperia intends to receive a price of not less than the above amount.
“The sale of our retail business will be by auction. We will select the best bid. If the bids submitted are unduly low, we will not go ahead with the sale of the supermarkets. Yet, given the number of bidders, it is my belief that the prices offered will be even above the amount indicated,” said Mr Artur Kawa, Chairman of Management Board, Emperia Holding SA.
Concurrently with the auction process, Emperia continues the intensive development of its retail division. The aim is to increase the value of the retail business or, if no satisfactory bid is submitted as part of the auction process, strengthen its standing in the market. The Company is constantly on the lookout for new retail locations as well as being in talks with chains interested in joining forces with the Group.
Stokrotka Sp. z o.o., the key company of the Group’s retail business, has acquired six new retail sites. In the first two quarters of this year seven new Stokrotka supermarkets were launched, with as many as 20 new Stokrotka locations expected to become operational in 2011.
In 2010, the Emperia Trading Group generated a 7% increase in sales revenues to reach PLN 5.9 million, with a concurrent improvement in EBITDA and net earnings. EBITDA increased by 16.6% to PLN 205.8 million and net earnings by 42% to PLN 98.5 million.
Emperia Holding SA will distribute some 40% of the Group’s 2010 consolidated net earnings as dividend. This is two times more than so far (20%). This year the value of the dividend distributed will total PLN 2.63 per share, which will cost Emperia over PLN 39.2 million. Starting from the distribution of net earnings for 2010, the Management Board intends to recommend annually to the General Meeting a dividend distribution of at least 40%.