Ragnar Trade is considering introducing a representative to the board of Plaza Centers

by   CIJ News iDesk III
2024-02-06   11:38

Ragnar Trade, which at the end of January reached 5.02% of shares in the capital of Plaza Centers does not exclude further capital involvement in the company and is considering the possibility of introducing its representative to its Management Board, said President Ragnar Trade Piotr Międlar.

On January 31, Plaza Centers reported that Elbit Imaging sold virtually all of the company’s shares on the escrow account, and therefore Elbit Imaging’s share in the capital of Plaza Centers decreased to 0% of the share capital. In addition, Plaza reported that Ragnar Trade acquired about 343.9 thousand shares of the company, and therefore Ragnar Trade’s share capital is 5.02% of the share capital.

“We are active in correspondence with the company’s representatives and are planning a meeting this week. Perhaps we will propose our representative to the board, we are supporters of substantive dialogue. We also analyze the situation ourselves and we are going to Romania for this purpose," said Międlar.

When asked whether Ragnar Trade intends to increase its involvement in Plaza Centers, the president replied: “We do not exclude such a step in the near future. Of course, in the event of potentially larger moves, in accordance with the regulations, we will inform the company that will inform investors through official news channels.”

Międlar explained that - although Plaza Centers has negative equity capital and its financial condition does not look good - Ragnar Trade primarily claimed a claim against the Romanian government for 262 million euros and the possibility of obtaining compensation.

The Casa Radio project in Bucharest was implemented as part of the public-private partnership. The company planned to create a multifunctional facility in the Casa Radio area. The Romanian government was to act as a minority shareholder, which was to increase the involvement of local authorities in urban development. The work did not go according to the schedule, due to various problems, including bureaucracy and the need for permits.

“The International Centre for the Settlement of Investment Disputes in Washington will be decided. We think there is a chance to win in this dispute. Plaza Centers is an interesting investment option, listed on 3 different exchanges - London, Tel Aviv and Warsaw. International player in his industry. This is a great value in itself, and the financial results, which currently indicate a regression in the company, may be easily changed," the President pointed out.

Międlar also emphasized that the main projects of Ragnar Trade are Milisystem and Sunway Network of the technology segment for the military.

“Our investments in the military sector are of a long-term nature and these are our main projects. Within two years, the Milisystem became a leading entity in its industry in Poland. In 2023, 250 shooting trainers were sold, and the implementation itself for the Academic Sports Association is a contract worth PLN 17 million. The second portfolio company of Sunway Network is an entity working on augmented reality glasses for use in the military area. We also count on synergies between the two companies, which will also bring results in the coming quarters in financial results. We count on big returns on investment and development. We also hope for foreign markets. Representatives of both companies participated in January 2024 in the USA in the military fair, which should also bring positive results, after a series of fruitful meetings," the President concluded.

The Plaza Centers Group is a developer of shopping and entertainment centers operating in the emerging market area. It has been listed on the Warsaw Stock Exchange since 2007.

Source:Ragnar Trade and ISBnews