Griffin suspends talks on LC Corp takeover

Griffin Real Estate has suspended talks with Leszek Czarnecki over a deal to acquire his controlling stake in the listed development company LC Corp, a source close to the deal has told CIJ. Griffin Real Estate initiated talks to acquire the local developer last year, reportedly bidding against US-based Lone Star, which recently entered Poland through the acquisition of the developer Globe Trade Center.

Market watchers suggest that Czarnecki hasn’t lowered his own valuation of the company, which currently said to be undervalued. Czarnecki controls 51.25 percent of the shares in LC Corp. The company’s spokesman Wojciech Sury told CIJ that Czarnecki remains committed to offloading his stake.

LC Corp shares were trading at a 30 percent discount last week, says Cezary Bernatek of the BM Espirito Santo Investment brokerage house. “The share price has been rising over the past few months in anticipation of the Griffin takeover. Prior to the reports the company had been traded at a 50 percent discount,” he adds.

Małgorzata Kloka of CA IB brokerage office points out that while its portfolio continues to be seen as solid, LC Corp is being currently undervalued on the stock market.
“The company is now being traded at a 30-percent discount, which is highly attractive considering LC Corp’s portfolio remains relatively strong,” says Małgorzata Kloka of CA IB brokerage office.