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EGM of MCI Management approves convertible bonds issue program

18.09.2012 Download PDF

September 17, 2012, the extraordinary general meeting of shareholders of MCI Management SA took resolution to approve the convertible bonds issue program. With it, the company may raise up to 15 million PLN from the market. The funds will be invested in technological endeavors.

“The purpose of this issue is to finance investments in leaders of many technologies by the fund MCI.TechVentures and MCI.EuroVentures. Currently, we have at our disposal liquidities of up to 250 million PLN in cash and unused credit lines and the bonds issue will be a new source of fundraising for investments. It is also easier to execute an acquisition transaction when we already have a capital reserve and the issue of bonds will give us just that” – said Wojciech Marcińczyk, Managing Director of MCI Management.

MCI management is to conduct an issue of up to 5000 bonds convertible to shares with a total value of up to 50 million PLN. Within this program, bonds will be issued in several series until December 31, 2014, and may be offered as public or private issue, exclusive of preemptive rights of current shareholders. The conversion price will depend on the date the conversion is made. The lowest planed conversion price, if bonds are converted before 31st of December 2012, is 9 PLN; the highest, if bonds are converted between January 1, 2019 and December 31, 2019, is 17.54 PLN. The conversion price is significantly higher than the present stock price, which was 4.58 PLN at the end of today’s trading session.

The first tranche of bonds may be issued still in 2012. The decision as to the parameters of the issue will be taken on the fly depending on the market situation.

MCI is one of the leading private equity groups in CEE region, managing a diversified portfolio of investments in private equity and venture capital funds. The main fundraising pipelines are WSE through issues of shares and bonds, private banking through issues of investment certificates, bank refinancing, PARP (Polish Agency for Enterprise Development) and NCF as well as investment exits. Until the end of this year, the company expects to execute investment exits raising from several to several dozen million PLN, generating in all of 2012 revenue on disinvestments between 170 and 200 million PLN.

“We sustain our investment expenditure forecast of 300 to 500 million PLN in the years 2012 and 2013. In subsequent years, it will grow to several hundred million PLN. Currently we are talking with companies worth in total approximately 100 million PLN. MCI.TechVentures should announce two or three more acquisitions this year” – said Wojciech Marcińczyk.

As a result of issuing convertibles, the share capital of MCI will increase by up to 5,555,000 PLN.

18.09.2012 Download PDF