POLAND. Shares in travel retailer Baltona, majority-owned by Indian operator Flemingo, are to be listed on New Connect, the alternative market of the Warsaw Stock Exchange, from tomorrow (June 30).
The move has been a year in the planning, The Moodie Report understands, following Flemingo’s purchase of a controlling share in Baltona from the Polish government in April 2010. A source close to Flemingo described it as “an important milestone in the development and further growth of the company”, adding that the capital generated would support the retailer’s “aggressive expansion in Europe” via Baltona.
In an official statement PHZ Baltona SA Chief Executive Magda Grzybowska said: “This [is an] opportunity to present investors with the “˜new Baltona’, a company that is a leader in Polish duty free & travel retail and which aspires to achieve the same position in other countries in Central and Eastern Europe. I am convinced that thanks to the profound changes in the company, and to our new development strategy, we can achieve our goals and gain the confidence of investors.”
“The listing of Baltona’s shares will help achieve better visibility and awareness,” the source confirmed. “It will allow access to financing in future, as a move to the main market is planned next year. It will also help in discussions with local vendors, banks and so on, and will enhance the perception of the company with regard to state-owned airports.” Baltona’s existing shareholders will not sell any shares as part of the listing.
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Baltona is Poland’s biggest travel retailer, and claims a market share of about 45% |
The source added that the listing had generated “significant interest from the media associated with the listing [and] we foresee good interest from investors”.
Flemingo is being advised by Bastion Capital, its adviser during the Baltona acquisition process.
Baltona is Poland’s biggest airport retailer with a market share of about 45% and total revenue of PLN155 million (US$55.4 million) last year. The company has forecast total revenue to grow to PLN175 million (US$62.6 million) this year.
Baltona runs 21 stores in eight Polish airports, including all the international locations. Its operations include shops at Gdańsk, Katowice, Kraków, Poznań, Rzeszów, Warsaw and Wrocław airports; a duty paid border store on the German crossing; and a shipchandling business.
The company recently opened a new outlet in Katowice Airport’s Terminal A and will open a further outlet in the southern pier of Warsaw Frederic Chopin airport later this year. Following Baltona’s acquisition of Romanian company Gredy last year, the retailer also plans to open a store at Constanta airport on the Romanian Black Sea coast shortly.
Earlier today Flemingo signed a contract to operate retail space at Colombo Bandaranaike International airport, opening a further new market for the company.
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The listing of Baltona’s shares is designed to generate capital to fund the company’s expansion |
