Thailand’s CP All bidding for Polish retail chain
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Thailand convenience-store chain CP All and three private equity funds are competing to buy Polish retail chain Zabka from Mid Europa Partners in a deal valued at up to €1.5 billion (US$1.59 billion).
Zabka’s sale comes at a time when some policies of the ruling conservative Law and Justice party in Poland are considered an investment risk, says Deal Street Asia. CP All, which runs 7-Eleven stores, is up against CVC Capital Partners, TPG and Hellman & Friedman. The deadline for binding offers is mid-February.
London-based private equity firm Mid Europa Partners, which focusses on central and eastern European investments, bought Zabka in 2011 for €400 million. Zabka, with 3400 stores, had sales of 5.75 billion zlotys (US$1.39 billion) in 2015.
In November, Mid Europa Partners bought Romanian supermarket chain Pro from Polish Enterprise Investors fund for €533 million.
Questions & Answers
Q.Which other companies are competing with CP All to acquire Zabka?
Which other companies are competing with CP All to acquire Zabka?
CP All faces competition from three private equity funds: CVC Capital Partners, TPG, and Hellman & Friedman. These companies are also submitting bids for the Polish retail chain.
Q.When did Mid Europa Partners originally purchase Zabka, and for how much?
When did Mid Europa Partners originally purchase Zabka, and for how much?
Mid Europa Partners acquired Zabka in 2011. They paid €400 million for the Polish retail chain at that time, focusing on central and eastern European investments.
Q.What is the estimated value of the current deal for Zabka?
What is the estimated value of the current deal for Zabka?
The current deal for Zabka is valued at up to €1.5 billion, or approximately US$1.59 billion. This is the estimated price competing bidders are offering.
Q.Why is this sale of Zabka considered to carry some investment risk?
Why is this sale of Zabka considered to carry some investment risk?
According to Deal Street Asia, the sale of Zabka comes at a time when certain policies of Poland's ruling Law and Justice party are seen as an investment risk by some.
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