Ergis

Press Release

12 May 2006, 15:55

Securities and Exchange Commission has Approved the Issue Prospectus of Eurofilms SA

The Polish Securities and Exchange Commission has approved today the Issue Prospectus of Eurofilms S.A., second largest Polish manufacturer of polyethylene stretch films and PVC thermoshrink films and a distributor of polypropylene BOPP films. Eurofilms intends to acquire at least PLN 17 mn from the public offering in order to significantly increase its manufacturing capacity. Increased capacity will enable further dynamic development of the Company?s export sales and strengthening its position on the Polish market. In addition to the new issue, the offering will also include a part of the existing shares currently held by the Company's shareholders: ERGIS SA and Finergis Investments Limited.

- We intend to publish the Issue Prospectus and to begin the roadshow next week. We hope that investors will appreciate our stable financial standing, excellent development prospects and dynamically growing export, Grzegorz Kędzierski, President of the Board of Eurofilms S.A. stated.

The core business of Eurofilms S.A. is production and sale of plastic goods, in particular:

  • production and sale of PE stretch film (e.g. for wrapping palletised goods),
  • production and sale of PVC heat shrink film (e.g. for wrapping food products),
  • sale of BOPP film (primarily for packaging manufacturing).

In 2005, the Company generated sales revenue of almost PLN 100 mn and more than PLN 6 mn net profit. Its current annual production capacity of stretch film amounts to 18,000 tonnes, and that of PVC thermoshrink film ? 700 tonnes. Eurofilms employs almost 90 personnel.

Eurofilms shareholders are Ergis SA, one of the largest plastics processing companies in the Central and Eastern Europe, the manufacturer of films, compounds, windowsills, panels, and wallpapers, holding approximately 82.97% of the Company's shares, and Finergis Investment Limited, a holding company controlling the remaining 17.03% of Eurofilms shares.