Sibelco is offering PLN 23.00 per share of Krynicki Recykling, which reflects a 40.2% premium over the closing price from the last trading session on the Warsaw Stock Exchange preceding announcement of the tender offer. Subscriptions to sell shares in the tender offer will be accepted from 12 April through 11 May 2022.
Krynicki Recykling selected Sibelco as a strategic investor following a review of strategic options launched in November of last year.
Adam Krynicki, the CEO and largest shareholder of Krynicki Recykling, controlling (directly or indirectly) 31.44% of the company’s shares, has committed to sell all of his shares in the tender offer and not to cancel his subscription in case of the counter-bid.
The price offered by Sibelco in the tender offer is also 28.5% higher than the average volume-weighted price from trading in the last three months preceding announcement of the tender offer and 21.1% higher than the average volume-weighted price from trading in the last six months. It also reflects a 10.6% premium over the closing price on 24 November 2021, i.e. the day before the company published information on the commencement of the strategic options review.
Adam Krynicki, CEO of Krynicki Recykling
, commented:
“I am convinced that joining the Sibelco group, which is a European leader in glass recycling, already active in France, Italy, UK and Belgium, is the best strategic option for Krynicki Recykling. Sibelco will be the best partner for Krynicki Recykling in its further development and maximization of the Company’s value, therefore I have decided to sell all my shares.”Subscriptions to sell shares in the tender offer will be accepted from 12 April through 11 May 2022. An investor holding shares in Krynicki Recykling may respond to the tender offer at the brokerage house that keeps his securities account. Sibelco intends to acquire 100% of the shares of Krynicki Recykling, i.e. 17,365,800 shares. If the threshold of at least 95% of the total votes at the general meeting of Krynicki Recykling is achieved as a result of the tender offer, Sibelco does not exclude commencing a squeeze-out of the minority shareholders, followed by delisting of the company’s shares from trading on the stock exchange. The tender offer will be effective if existing shareholders submit subscriptions to sell at least 51% of the shares, i.e. 8,856,558 shares, and also upon Sibelco obtaining the relevant approval of the president of the Polish Office of Competition and Consumer Protection (UOKiK).
Sibelco CEO Hilmar Rode
said:
In 2021 we grew our glass recycling activity significantly through our acquisitions of Viridor in the UK and Solover in France. We believe that the acquisition of Krynicki Recykling in Poland will be an important step in the development of our glass recycling business in Central and Eastern Europe.
Hilmar Rode
Sibelco CEO
The brokerage intermediating in the tender offer is Santander Biuro Maklerskie, and the offeror’s legal adviser is Clifford Chance. Lazard and Santander are acting as Sibelco’s financial advisors in relation to the transaction.
About Krynicki Recykling
Founded in 1998, Krynicki Recykling is a Warsaw Stock Exchange (WSE) listed glass recycling company. It has a capacity to recycle some 700kT of glass cullet at its five plants in Poland and Estonia and sells this recycled material to regional glass producers. Krynicki Recykling has developed a leading position in the growing glass recycling market in Poland and has grown successfully into other countries in Central and Eastern Europe. In 2021 the company employed 120 people and generated revenues the equivalent of EUR 27 million.
