Mostostal Zabrze to redeem shares?

2010-03-12

Mostostal Zabrze Holding is considering buying back its own shares for a sum exceeding PLN 60m (€15.4m). The stock, representing roughly 10% of the company's total share value, may be spent on acquisition targets, according to Parkiet.
The company's senior management is planning a number of acquisitions and the redeemed shares may be used as payment for these transactions as the businesses with which Mostostal is currently holding talks have expressed an interest in such form of settlement. However, the company may also resort to a loan or bond issue to finance the acquisitions. The company is keen to take control of two firms with operating profiles similar to itself and with annual turnovers of PLN 100m (€25.6m) and PLN 300m (€76.9m), respectively.
The company's senior management expects 2010 to turn out better in terms of financial results than the previous year, when the company posted revenues of PLN 988.5m (€253.5m) and a net profit of PLN 40.3m (€10.3m). Mostostal's order book for this year is almost full. Moreover, it still hopes to ink more contracts, including in the power engineering branch. One such project it is keen to win is the construction of a biomass fuelled power station.