Ergis

Press Release

27 February 2007, 13:42

Issue Prospectus of EUROFILMS SA Submited at the Securities and Exchange Commision

Eurofilms SA has submitted its issue prospectus to the Polish Securities and Exchange Commission (SEC). The Company is the second largest Polish manufacturer of polyethylene stretch films and PVC heat shrink films and a significant distributor of polypropylene BOPP films. Eurofilms wishes to acquire funds in the initial public offering in order to significantly increase its production capacity and share in dynamically growing domestic market and in foreign markets.

The Company intends to carry out the offering in the current year. Millennium brokerage house will be its financial advisor and the offeror in the transaction. Legal advisory services will be provided to the Company by White & Case law firm, and auditing services  by BDO Polska.

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).

The strengths of Eurofilms is based on the wide product range and high quality of its products, experienced team with a deep market insight and ISO 9001:2000 and 14001:2004 certificates. These factors have contributed to the Company?s success in achieving and maintaining a very strong market position and market image.

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 heat shrink film - 700 tonnes. Eurofilms employs almost 90 personnel.

Eurofilms shareholders are Ergis S.A., 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 Investments Limited, a holding company controlling the remaining 17.03% of Eurofilms shares and over 97% of shares of Ergis SA.

Finergis Investment Limited is controlled by DBG Eastern Europe II L.P., a private equity fund investing in Central and Eastern Europe in medium size companies.