POLAND. Polish Airports State Enterprise (PPL) has secured the initial approval of its board to complete the full acquisition of Flemingo-owned Baltona Duty Free.
Baltona, which is listed on the Warsaw Stock Exchange, is a duty free operator at Polish and other European airports and has a general stores and catering business in Poland and abroad. The transaction will contribute to Baltona’s recapitalisation.
The travel retailer operates stores across Poland’s airports, including 14 at Warsaw Chopin Airport. It also operates at airports in Estonia, Romania, France, Italy and Ukraine.
Flemingo International, Baltona’s majority shareholder, signed a letter of intent regarding the deal in June.
PPL is part of the PPL Business Group and has stakes in 14 airport operating companies in Poland.
A disclosure to the Warsaw Stock Exchange, published on Baltona’s website, outlined the current status of the deal. It said that the company will issue bonds to be taken up by PPL in order to refinance the company’s current debt and provide funds to finance the company’s working capital.
The document read: “Currently, the issuer is awaiting information on the finalisation of the examination of formal and legal conditions, which must be met by the parties to conclude contracts in the case, and in the absence of formal obstacles to agree on the final arrangements and the date of their conclusion.”
Asked by The Moodie Davitt Report what the motivation was behind the deal, PPL spokesperson Piotr Rudzki said: “We feel that the possible acquisition of Baltona is economically justifiable, which could provide synergies based on our experience and knowledge of the aviation industry. It would also be good for passengers, since it would provide competition on the duty free market.”
