Grupa Kety S.A. (WSE:KTY) signed a preliminary agreement to acquire 100% stake in Selt Sp. Z O.O. from two unknown individuals for PLN 420 million on June 14, 2024. The total shares in Selt Sp consists of 0.211815 million representing 100% stake.

In the Agreement, the Parties decided that the sales price of the company shares will be equivalent to the value of the Company?s enterprise agreed by the Parties, amounting to PLN 420 million, which will be reduced for the value of the net debt. As of May 31, 2024, the estimated value of the net debt of the company amounting to PLN 40 million, the net Sales Price would amount to PLN 380 million. It has been planned that the transaction will be financed from bank loans and the Issuer?s own funds.

In the opinion of the Issuer?s management board, the completion of the transaction will enable the maintenance of safe financial ratios, and shall not have a major effect on the binding dividend policy. The transaction closure and transfer of the ownership title to the shares based on a separate promised sales agreement, which is intended to be signed on or before October 25, 2024, depends on obtaining anti-monopoly permits from the anti-monopoly authorities in the Czech Republic and Austria by September 30, 2024, which affects the determination of the date when the promised shares sales agreement will be signed. If the Additional agreements and the preconditions are not fulfilled on or before October 7, 2024, the agreement shall expire without any contractual liabilities against the counterparty or any third party.

SELT Sp. z o.o. is one of the leaders on the Polish market of sun protection systems manufacturing, with revenue of roughly PLN 280 million. The estimated value of EBITDA (profit on operating activities plus depreciation) for the year 2023, reflecting the current structure of the company?s assets, in consideration of the effects of synergy post the transaction, is roughly PLN 42 million.