Kruk and P.R.E.S.C.O. have agreed on the main terms of the purchase of 100% of shares in the Luxembourg group P.R.E.S.C.O. Both companies work in the field of purchase of receivables. KRUK, as the leader in receivables management in Central Europe, wants to take over P.R.E.S.C.O. by acquiring 100% of its shares and the right to administer its portfolios of receivables in Poland.
P.R.E.S.C.O. is one of the leading entities investing in receivables on the Polish and Russian markets. The company has been operating since 1998 and specializes in purchasing receivables portfolios that are considered difficult to recover by their original owners. In 2014, the company had 1,999 cases. The total value of cases of KRUK Group, calculated at nominal value, amounted to 24 billion zloty by the end of the first half of 2015.
After Kruk signed the letter of intent for the purchase of Presco Investments, shares in Presco rose by 95.5 percent. The deal ensures Kruk’s acquisition of 2 million cases handled on the Polish market by P.R.E.S.C.O. They will feed into the database of cases already owned by the group, and so the number of cases handled by Kruk will increase to over 5 million.
The final signing of the agreement is not yet certain. It depends on whether the companies manage to agree on the detailed terms and conditions. The investment agreement is to be signed before October 30 this year, but it is still necessary to obtain the consent of the President of the OCCP and Kruk’s supervisory board. Both sides have agreed, however, that the transaction value would not exceed 220 million zloty.
The takeover operation of Presco Investments by the Kruk Group may also require the acquisition of structures. As an announcement from Presco states: “We believe that the transaction involving the acquisition by KRUK S.A. of a subsidiary P.R.E.S.C.O. in connection with the possible acquisition of part of the operating structures in Pila, will allow the KRUK Group to realize significant synergies. P.R.E.S.C.O.’s experienced team combined with the excellent operational processes of the market leader would take full advantage of the enormous potential of the acquired receivables portfolio. Therefore, I am convinced that closing this transaction will be very beneficial for both parties.”
“After completion of the transaction, P.R.E.S.C.O. GROUP S.A. intends to concentrate on promising projects in the area of consumer finance, for which we have been preparing in recent quarters” adds Krzysztof Piwoński from Presco Group in a press release from the company, which has been listed on the main market of the Warsaw Stock Exchange since 2011, and it is valued at more than 111 million zloty.