Last Tuesday, Opoczno said it would sell all its plants to Cersanit. In four days, Opoczno stock dived 24 percent to PLN 43.2 (EUR 11.4). Cersanit, the producer of complete bathroom equipment, lost 2.4 percent to PLN 39.9. One of investment funds present in Opoczno told “PB” that the decision of financial investors to sell its stock would depend on Michal Solowow plans. The latter, one of the richest Poles with PLN 6.6 billion of assets, and the owner of 48.8 percent of Cersanit and 48.4 percent of Opoczno, reveals his plans.
“Investors worried with recent stock dive of Opoczno believed in an unreal scenario. We have never said that the stock would cost that much”, the investor stressed.
In his opinion, Opoczno business is not worth more than PLN 33.5 per share. This is the price, Cersanit paid for its stake a year ago. The investor believes that selling its plans is the only chance for Opoczno to develop and generate income.
“The company faces giant investments which would require the company to drastically limit or even stop production. No company can do this, otherwise it would lose the market”, Michal Solowow said.
Organic growth is not a good solution either, because it would last too long to build new plants, especially with financial problems of Opoczno which has PLN 120m of debts. Selling plants, Opoczno would reduce its debts.
“This amount should, in my opinion, go to shareholders. I think about a huge dividend or cancelling part of the stock”, Michal Solowow added.
When Opoczno was first listed on the Warsaw Stock Exchange in 2005, its stock cost PLN 55. Then it kept falling. When Cersanit signed contract to buy 45 percent of Opoczno a year ago, the stock rose above PLN 37.
(PLN 1 = EUR 0.264)