Ergis
27 January 2009, 14:44

BRE BANK SA AND BANK HANDLOWY SA ACCEPTED FURTHER LOAN FINANCING OF EXPENDITURE RELATED TO THE ACQUISITION OF GERMAN COMPANIES BY THE ERGIS GROUP

 

On January 26, 2009, the ERGIS Group signed an Amendment Agreement to the Facilities Agreement concluded between the Company and Bank Handlowy w Warszawie SA and BRE Bank SA in October 2007, whereby the repayment of the facility B loan (EUR 1.3m and PLN 22m) and a portion of the facility A loan (EUR 3.89m) was prolonged starting from January 2010 to October 2012. The remaining portion of the facility A loan (EUR 16.14m) will be repaid as initially scheduled, by 2012.

 

The Management Board of the Ergis Group intended to finance the transaction of acquisition of MKF Folien GmbH and Schimanski GmbH from proceeds from a share issue. Following the change of situation at the WSE, these plans became disadvantageous for the existing shareholders. Given the above, the Management Board of the Ergis Group have negotiated with the lenders (BRE Bank SA and Bank Handlowy SA) their approval for further financing of the acquisition by means of a loan. The total amount of the financing is EUR 34.9m.

 

 “I am satisfied that we managed to negotiate the banks’ approval for the financing of the acquisition of MKF-Folien and Schimanski GmbH for the subsequent year with a bank loan. This acquisition has strengthened our leadership position in the plastics processing industry in the Central and Eastern Europe. We planned to finance the acquisition by way of a share issue, however due to the deterioration in stock markets we decided to postpone the issue. If the stock market situation recovers, we will reconsider the share issue and an earlier repayment of the debt,” – commented Tadeusz Nowicki, President of the ERGIS-EUROFILMS SA Management Board.

 

 

ADDITIONAL INFORMATION

 

ERGIS-EUROFILMS SA was created through the merger, carried out in 2007, of the listed Eurofilms and its trade investor, ERGIS S.A. The merged Company is Poland’s largest and one of Central and Eastern Europe’s leading manufacturers of PVC products: films, compounds, wallpapers, wall panelling, and windowsills, The Company's offer includes films laminated with a layer of another film, paper, woven and non-woven fabric, etc. printed films, insulation films, packaging films (including films for packaging pharmaceuticals), bus floor covering, compounds for cable manufacturing, interior and exterior wall panels, expansion joint tapes, artificial leather, coated fabrics, tablecloths, and vinyl and paper wallpapers. Additionally, the Company is Poland's second largest manufacturer of stretch films (tensile films, used e.g. for wrapping loads on pallets, PVC thermoshrink films (used, e.g. for food packaging) and PET tapes (used for fastening medium heavy and heavy products and loads), as well as a distributor of polypropylene BOPP film (used mainly for packaging manufacturing). Additional information is also available at www.ergis-eurofilms.eu

 

 

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