Approval of Epicenter K investment in INTERSPORT Polska extended by Polish regulator until Sept 30
INTERSPORT Polska S.A. on Tuesday concluded with Epicenter K LLC (Kyiv) and its business partner, the Cypriot Paravita Holding Limited (Nicosia), an annex to the investment agreement on joint investment in a Polish company, in order to extend the approval period with the Polish antimonopoly regulator UOKiK from the original agreed deadline of August 31 this year.
"In accordance with the signed annex, the deadline for the investor and partner to receive the necessary permits from Prezesa Urzędu Ochrony Konkurencji i Konsumentów has been extended until September 30, 2023," INTERSPORT Polska said in a stock announcement on Tuesday.
At the end of the day, INTERSPORT Polska shares fell 2.7% to PLN 0.87 per share, which corresponds to a capitalization of PLN 29.69 million (about $7.63 million at the current exchange rate).
The Polish company recalled that on April 19 this year, it concluded an investment agreement with Epicenter K, which also operates stores under the INTERSPORT brand in Ukraine, and Paravita Holding, which provides for a total investment of the partner and investor of EUR 10 million. This amount is expected to be used, in particular, for the development of a Polish company by opening new and modernizing existing stores.
It was assumed that, based on the decisions of the general meeting of April 20, Paravita Holding would buy back shares of the new series I issue for EUR 7 million by October 7, 2023 in five tranches if the UOKiK deal is approved. However, it was assumed that, without the permission of the regulator, Paravita Holding could invest EUR 2.875 million in the company, provided that its share did not exceed the threshold of 19.9% of votes at the general meeting of shareholders.
In addition, the agreement provided for the purchase of Epicenter K by the end of this year of shares of a new issue for another EUR 3 million with payment in kind, including, in particular, construction materials.
"The agreement will automatically terminate if the preconditions are not met by August 31, 2023, in accordance with the terms of the agreement," the announcement dated April 19 this year said.
