Polish Development Fund Makes an Investment in the WB Electronics Company. 128 Million Zlotys Worth of Shares

15 listopada 2017, 11:59
Piotr Wojciechowski – President of the Management Board at the WB Group. Image Credit: J.Sabak
Image Credit: WB Group

Polish Development Fund has concluded an agreement with the WB Electronics company, with the contract having a value of PLN 128 million, regarding the acquisition of newly issued shares of the aforesaid entity which is a part of the WB Group.2.4 million of shares raises the capital of the company, also providing the PDF with 24% of the overall shares quantity. In this way, we, as the PDF, would like to show that we support development of modern defence industry in Poland.The WB Electronics’ success, also on the foreign markets, is a proof that Poland may develop its defence industry up to the world class level – as it was stated during the event accompanying the agreement conclusion by Paweł Borys, President of the Management Board at the Polish Development Fund. 

As it was stressed within his statement, by the President of the Polish Development Fund, the defence industry plays a significant role within the structure of the so called Morawiecki’s Plan, meanwhile investment made by the PDF with regards to the WB Electronics company would make it possible to reinforce the defence sector domestically.

We want to support the WB Group in its effort to expand its activities onto the foreign markets. We also hope that good cooperation would be established between the Company and the Polish Armaments Group, within the framework of the key modernization programmes pursued by the Polish Armed Forces, and in order to integrate the domestic product offer and conclude contracts on the foreign marketplace.

Paweł Borys, President of the Management Board at the Polish Development Fund

The funds obtained within the framework of this “capital injection” would be used for the purposes of further developing the key projects, e.g. implemented as a part of the Żwirko and Wigura programme concerning the UAV systems. The aforesaid initiative is a part of the Strategy for Responsible Development.

The company also plans to develop its footprint within domains reaching beyond the areas in which WB Electronics is taking the lead, opening itself towards new possibilities. This includes electric drive work platforms weighing up to 3 tonnes, that are to be developed by the WB Electronics company within the framework of a programme co-financed by the National Centre for Research and Development.

Piotr Wojciechowski – President of the Management Board at the WB Group. Image Credit: J.Sabak

Today we are signing an investment contract, on the basis of which, within the framework of raising the capital, PDF acquires 24% of the WB Electronics’ shares. This info is interesting and important. Particularly for our team, as between 2017 and 2018 we would be celebrating our 20th anniversary, as the WB Electronics company. We were starting as a small entity, just to reach a stage at which we are employing 40 times more people, with 60-fold higher income. Our capital now exceeds PLN 500 million.

Piotr Wojciechowski – President of the Management Board at the WB Group

The Agreement signed on 9th November 2017, by and between the WB Electronics company and the Polish Development Fund, grants the latter entity with 24% of shares within the capital, with equivalent voting power in the WB Electronics company. The Fund is also to be capable of introducing the shares into trade on regulated market, or selling the shares for another entity. 2400000 shares acquired by the PFR are a part of a special issuing initiative, raising the total capital of the company by PLN 128 million.

As stressed by both parties, the action would provide the company with funds required to implement further expansion, meanwhile the Treasury would have a certain voice established within a company that is seen as an entity bearing the key meaning for the national security. This is a step reminiscent of the road taken by defence and security companies working in France and the UK.

Notably, the WB Electronics products, as well as the items included in the offer of the remaining entities belonging to the WB Group, are being widely applied within the structure of the inventory of the Polish Armed Forces. They are a relevant part of numerous modernization programmes, including the Regina, Rak, Homar, or Tytan initiatives.

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