Latest News Headlines
Commercial Credit News
|PRA Group Announces Tender Offer for All Shares of DTP S.A.|
|Monday, 29 February 2016|
PRA Group, Inc. (Nasdaq:PRAA), a global leader in acquiring and collecting nonperforming loans, has announced a public tender offer to purchase 100% of the shares in Warsaw-based DTP S.A. (DTP) at PLN 4.90 per share (approximately US$ 1.23 per share), for an aggregate purchase price of PLN 174,998,600 (approximately US$ 43,749,650), assuming PRA acquires 100% of the shares. DTP shares are traded on the Warsaw Stock Exchange. The Company plans to finance this transaction with cash held in Europe and borrowings under its European credit facility.
The offer price represents a 16% premium to the 3-month weighted average share price. Prior to the announcement of the tender offer, shareholders of DTP representing approximately 65% of DTP’s shares entered into irrevocable undertakings to tender their shares in response to the offer.
Steve Fredrickson, chairman and chief executive officer of PRA Group, said, “Poland has a very active market for consumer NPLs and we believe DTP presents us with an opportunity to build a good foundation for growth in the market. This acquisition aligns with our goal of bringing some operational capabilities in Europe in-house and further expands our ability to leverage our operational efficiencies.”
Robert Ditrych, chief financial officer and vice chairman of Paged Group, said, “We support this transaction by committing our 49.5% of DTP shares to this tender. PRA Group’s offer for DTP represents a good outcome for DTP shareholders. The Company will be able to accomplish more through the cooperation with the premier international debt buyer than it could as a stand-alone Company.”
Completion of the transaction is subject to certain customary conditions, including tenders being received in respect of at least 80% of the outstanding DTP shares, as well as Polish Anti-Monopoly Office (UOKiK) approval. Provided that the number of Shares subscribed for under the tender offer is sufficient, following its completion, PRA intends to initiate the process to withdraw DTP shares from public trading and delist the company from the Warsaw Stock Exchange.
The subscription begins on March 18, 2016 and expires on April 18, 2016. Subject to the satisfaction of the closing conditions, PRA expects the tender offer to have a settlement date of April 26, 2016, at the earliest.
Forums International Ltd
Attendance at your first meeting is free of charge, and please quote reference 'CCR2016' to receive the special 10% discount off of your first annual subscription.
Find out more here.
The latest edition of CCR Magazine, the leading editorial publication in the UK credit industry, is out.
CCR is the premier magazine for consumer and credit professionals. It provides an independent voice to the industry, breaking major news stories and running in-depth features.
As a magazine, it works with and campaigns on behalf of the credit industry to promote its importance as a centre of potential profit and business development to the wider business world.
Providing information and analysis for thousands of senior credit professionals worldwide, every quarter.
GTS Media Ltd
81 Cambridge Road
Registered in England No: 05483197