Huge interest in FAMUR shares sold by TDJ

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As a result of the transaction FAMUR will gain PLN 400 million for taking over KOPEX, implementation of key investments and intensification of the Go Global strategy implementation

In the private offer, dedicated to institutional investors, TDJ Equity I alloted 97,294,000.00 shares of FAMUR at a price of PLN 5.5, which constitutes 20% in the share capital. The transaction was carried out as part of the accelerated book build process (ABB). mBank was the global coordinator of the offer and the managing entity, and Mercurius Dom Maklerski and Dom Maklerski PKO BP were the bookrunners.

Due to the demand reported by the institutional investors, which was much higher than the number of shares offered, after the recommendation of the bank consortium TDJ Equity I decided to increase the number of shares placed within the ABB transaction to 97,294,000.00 shares of FAMUR, i.e. 20% of the capital, in comparison to 72,970,500.00 shares which were previously planned.

In accordance with previous information, TDJ will allocate the funds acquired from the sale of 72,970,500.00 shares of FAMUR to the acquisition of a new share issue of the Company, adopted at the General Meeting of Shareholders on 5 June, at the price equal to the sale price fixed in the course of the ABB procedure. TDJ will be the long-term majority shareholder of Famur, which will continue to support the dynamic development of the company – pointed out Czesław Kisiel, Vice-chairman of the Supervisory Board of TDJ SA

FAMUR will allot the acquired funds for the strategic development investments, primarily for the purchase of 65.8% of KOPEX shares from TDJ and for the activities related to the intensification of the foreign expansion strategy implementation – Go Global. The acquired capital will also make it possible to finance the necessary investments and consolidate the surface segment, which will strengthen the leadership of Famur Famak in Poland and will allow it to build a strong market position in the region.

In recent weeks the Management Board of FAMUR held the meetings and teleconferences with over 80 domestic and foreign institutional investors, during which i.a. the plan of acquisition and integration of KOPEX as well as the prospects of development of the Company in the framework of the Go Global strategy implementation was presented.

The success of the sale of shares by TDJ and high interest of institutional investors in FAMUR shares are the confirmation for us that the capital market construes the plan to integrate FAMUR with KOPEX positively, which is an important link in the strategic development plan of the FAMUR Group in the world. Its key element is the use of the potential of FAMUR and KOPEX in order to build the Polish champion, that will be ready to implement comprehensive projects of an excavation and energy character all over the world – says Mirosław Bendzera, CEO of FAMUR SA

The plan includes the inclusion of the assets of the “machinery section” of KOPEX in the FAMUR Group. Integration with KOPEX will allow the FAMUR Group to increase the scope of activities rapidly as well as to increase the efficiency and speed up the implementation of the Go Global strategy, which provides for the achievement of the half of the Group revenues from foreign markets within 5 years. The integration of FAMUR and KOPEX, understood as the release of the full synergy effects, will be completed by the end of 2017 and the formal completion of the integration will take place in the first quarter of 2018. The integration will make it possible to fully exploit the business opportunities in the face of the investment revival on the mining market, both nationally and internationally.