MCI’s stock has risen by over 10 percent in the last two days. On Tuesday, it closed at PLN 29.67 (EUR 7.8), or 8.7 percent higher than on Monday. When the fund announced, it is going to acquire companies from Actebis group, including ABC Data, the Polish leader in computer equipment distribution, investors were disappointed. The stock dropped 5.13 percent to PLN 25.9. The majority of analysts don’t know yet what to think about the transaction.
MCI is going to buy 80 percent in six companies from Actebis Holding group. The stake will cost EUR 58m. An ownership company will be found for them.
“Then, within 9-24 months, we will list the company and partly withdraw from the investment”, Katarzyna Hejka, MCI Management partner said.
If the issue is successful and the company is evaluated at above EUR 105m, MCI will pay the present owners of ABC Data EUR 12m more. MCI will found a consortium with Krzysztof Musial, the founder of ABC Data. MCI hopes that ROI will be a double-digit number.
Analysts are not eager to comment on the transaction. Several analysts of biggest brokerages refused to say anything. Zdam Zajler from DM Millennium who gave recommendations for Action many times, believes that MCI was right.
“If you look at the capitalization of IT distributors listed already, including AB, Action and Pronox, and if you compare their sales with those generated by ABC Data, you see that the price the fund is paying is very attractive”, he believes.
However, ABC Data’s profitability is lower than that of AB and Action.
“It has been a limited liability company so far owned by a foreign company. MCI may easily improve the result so it should have no problems with selling it on the stock exchange in two, three years”, Adam Zajler added.
In 2006, ABC Data had EUR 538.6m of sales, or 21 percent more than a year earlier. The net income amounted to EUR 4.4m.
(PLN 1 = EUR 0.264)