The main shareholder PFNonwovens Holding announced that it will buy additional shares of the Znojmo nonwovens manufacturer PFNonwovens, thus increasing its total stake in the company by more than ninety percent. This will allow him to start the process of crowding out small shareholders.
“The company will submit to the CNB a request for approval of the justification of the proposed amount of consideration to minority shareholders in the amount of CZK 719.5 per share,” the company said in a regulatory announcement.
PFNonwovens declined to comment on anything, only stating that one of the reasons for the crowding out was the activism of some minority investors. “During the pandemic, PFNonwovens entered unnamed investors whose interest, in our opinion, is not the company’s long-term growth, but the short-term appreciation of its speculative investment,” comments Jakub Dyba, R2G’s direct investment director, owner of PFNonwovens Holding. In the mentioned period, Hájek also bought PFNonwovens shares.
Dyb’s explanation makes sense to counselors. “The main investor came to the company with the idea that he wanted to build the number one on the world market, so he invested heavily and earned dividends. However, small shareholders are usually not so patient logically. Therefore, the interests of both groups diverged, which could have had only one outcome, “comments Antonín Piskáček, head of Corporate Finance at Česká spořitelna, stating that he does not want to comment on the price.
Hájek, together with another group of investors, is now preparing to file a lawsuit against PFNonwovens Holding. “We also address other investors. So far, we know that we will be joined by Michal Šnobr, who covers roughly another percentage of shareholders, which also includes J&T banka’s share, ”says Hájek. “In addition, we are preparing a complaint to the CNB,” he adds.
According to Hájek, valuing the value of a company does not make sense. PFNonwovens allegedly did not make any opinion and determined the price on the basis of the average share price for the last six months. “Although she added an amount to this averaged value, the resulting price does not correspond to reality at all. Despite the fact that three years ago PFNonwovens Holding offered 1,010 crowns per share, “Hájek reminded.
According to Fio banka analyst Jan Raška, the proposed price is also low. “This is a relatively conservatively proposed price. Our valuation is at the level of 834 crowns per share, ie about sixteen percent higher, “says Raška. However, according to him, the displacement process is only at the beginning and the price tag can still change.
Shares of PFNonwovens responded strongly to the announcement. Since the morning, they have gained eleven percent on the Prague Stock Exchange, bringing it to 744 crowns per share.
Since 2017, the majority shareholder of PFNonwovens has been the PFNonwovens Holding group, which is owned by the R2G fund of billionaires Oldřich Šlemr, Eduard Kučera and Pavel Baudiš.