Certain winner of dairy sector

 

Rivals have already started to fight for power at Lacpol. Poland’s biggest dairy producers include Mlekpol managed by Edmund Borawski with 1.8 billion of sales in 2007, Mlekovita headed by Dariusz Sapinski with PLN 1.6 billion of sales, and Polmlek co-owned by Jerzy Borucki. Today, Lacpol has over 100 shareholders, none of them with a majority stake. In addition, the company very often competes with its own shareholders. Recently, a 5-percent stake of Lacpol has been put up for sale by KZSM dairy producer. Several players want to acquire the stake, including Mlekovita and Polmlek.

“In time, Lacpol’s shares will be concentrated in the hands of several companies. We are also interested in this process, therefore we want to acquire the stake from KZSM”, Dariusz Sapinski, Mlekovita CEO said.

He is already member of Lacpol’s supervisory board because Mlekovita has a small stake of its rival.

 

Polmlek, Poland’s third largest dairy producer, is also interested in the transaction.

“One of our biggest partners, OSM Kwidzyn, has submitted its offer to buy Lacpol’s stake owned by KZSM. Several days ago, we were invited to take part in negotiations”, Jerzy Borucki, Polmlek deputy CEO and one of the company’s owners said.

Edmund Borawski, the head of Poland’s biggest dairy company Mlekpol, believes that the number of Lacpol’s shareholders will keep falling. His company is also present at Lacpol’s supervisory board. He refused to reveal whether his company will buy further stakes at Lacpol.

 

Today, Lacpol’s biggest shareholder owning nearly 30 percent of shares, is Rolmlecz, a small company controlled by Kazimierz Los, Lacpol’s CEO (with 51 percent shares).

“Managing this company is not easy as it is competitive to its shareholders. That’s why there are often clashes among them as far as the company’s strategy is concerned. Collecting 30 percent of shares by Rolmlecz made the decision process easier. Further concentration seems very likely. Otherwise, the development will be paralyzed by conflicts”, Kazimierz Los said.

(PLN 1 = EUR 0.280)