In big breaking news Polish Airports State Enterprise (PPL) is to complete the full acquisition of Flemingo-owned Baltona Duty Free.

TRBusiness can confirm that PPL has obtained initial approval from its board of directors ahead of the transaction which has yet to be finalised. This is after Flemingo International Limited signed a letter of intent regarding the purchase in June 2019. Flemingo has been the majority shareholder in Baltona Duty Free since 2010.

A leading duty free operator at Polish regional airports, Baltona also runs general stores and catering establishments in Poland and abroad. The transaction will facilitate Baltona’s recapitalisation and help ensure stable growth in the future.

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Baltona has enjoyed signifcant development in recent years. It currently operates 14 stores including half the commercial space at Warsaw Chopin International Airport. It is also present at aiports in Estonia, Romania, France, Italy and Ukraine.

PPL is a leading company in the PPL Business Group and holds stocks and/or shares in 14 airport operating companies in Poland.

According to a Baltona Duty Free statement seen by TRBusiness, PPL and Flemingo Capital Group entities will determine the terms of the sale of Baltona Duty Free’s shares.

The statement added: “Currently, the issuer is awaiting information on the finalisation of formal and legal conditions, which must be met by both parties. Should there be no formal obstacles final arrangements will be made.

“It is important to point out that Baltona is only involved in talks concerning the issue of bonds to PPL in order to refinance the company’s current debt and provide funds to finance the company’s working capital. It is not discussing the sale of the company’s shares.”

TRBusiness will bring you reaction from Piotr Kazimierski, Baltona Duty Free CEO and Flemingo International representatives in due course.