Merger related valuation of the companies within Kruszwica capital group

Financial advisory to Zakłady Tłuszczowe "Kruszwica" S.A., leading Polish vegetable fats producer, on the valuation of the companies within its capital group

In June 2006 Polish edible oil sector leaders: ZT Kruszwica SA, Ewico Sp z o.o., Olvit-Pro Sp. z o.o. and ZPT Olvit Sp. z o.o. announced the merger plan in relation to the merger process of the above companies. As a result, the combined entity will be the largest edible oil producer in Poland with an estimated annual turnover amounting to PLN 1.5 bln.

FIDEA acted as a sole financial advisor for ZT Kruszwica SA, Ewico Sp z o.o., Olvit-Pro Sp. z o.o. and ZPT Olvit Sp. z o.o. and prepared independent valuation analyses of the merging entities. The valuation was used by the management boards of the companies to determine share exchange ratios of Ewico Sp z o.o., Olvit-Pro Sp. z o.o. and ZPT Olvit Sp. z o.o. shares into ZT Kruszwica SA shares quoted on the Warsaw Stock Exchange.

In connection with the contemplated transaction FIDEA also issued a fairness opinion which confirmed that the exchange ratios proposed by the merging entities were fair from the financial point of view.