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PLN 17.5 million to boost MCI Group .

20.03.2008 Download PDF

On March 18, 2008, MCI Management ultimately sold assets in Technopolis sp. z o.o., including shares in JTT Computer SA in bankruptcy and debts in that company, for PLN 17.5 million to an investor from the development sector. The value of that transaction has been paid in total by the investor.

Technopolis, in which MCI Management SA holds 100% shares, was set up in June 2004 with the assumption to participate in the restructuring of JTT Computer SA in bankruptcy. Technopolis bought for PLN 45 thousand a stake of shares in JTT representing 36% of JTT capital. As a result of the analysis of the situation a collection of JTT due receivables began which ultimately resulted in collecting over 50% of all receivables.
That project was conducted by the MCI.Euroventures team (private equity fund) managed by MCI Capital TFI. The EuroVentures team is responsible a.o. for the assets of: ABC Data, Bankier.pl, Lew, Nexcom.

The transaction with the participation of Technopolis was the first divestment planned by MCI for 2008. MCI achieved on that transaction almost 3.5-fold return on invested capital with IRR at 187%. After the conclusion of the transaction on March 18 both MCI Management SA and Technopolis sp. z o.o. do not have any JTT Computer assets.

Andrzej Lis – Senior Investment Director of the fund – who is responsible for Technopolis investment, believes that apart from above-average financial results achieved on that transaction and raising significant financial means which can be used effectively used on new project in MCI Group important business objectives in line with the strategy of the Company and connected with JTT project have been reached.

“Technopolis project was not a typical transaction made so far by MCI, nor is it representative of the portfolio of MCI.EuroVentures assets, said Konrad Sitnik – MCI.EuroVetures team leader, however, we do not rule out that the experience and intellectual capital connected with carrying out restructuring projects and distressed assets management can be used in launching another special one within MCI. MCI Management is in the process of constant strategic changes. After extending operations in the scope of Venture Capital assets management to include Private Equity assets management the Fund of Funds will be the third pillar of future growth of MCI within which MCI will either incubate or invest in managing companies conducting niche (sector, geographical or product) investment strategies in the area of alternative assets” – emphasized Konrad Sitnik.

20.03.2008 Download PDF