Mercator Medical Group intends to invest approximately PLN 150 million in real-estate development projects over the n...
Mercator Estates to become the real-estate development subsidiary of Mercator Medical
Mercator Medical Group intends to invest approximately PLN 150 million in real-estate development projects over the next 12 months, which will cover residential and commercial investments, carried out individually or with industry partners.
“The aim of expanding Mercator Medical Group’s scope of business is to maximize shareholder value through projects that we expect to bring a sufficiently high margin level. As a result, I am convinced that this will allow for a more effective and diversified allocation of free funds remaining at the disposal of the Group”, says Wiesław Żyznowski, President of the Board, Mercator Medical S.A.
At the end of March 2023, Medical Group could boast nearly PLN 392 million in cash and other financial assets. The activity of Mercator Estates will concentrate on investing in broadly understood real estate projects, including residential and commercial ones. The assumed investment formula involves acquiring shares in special purpose vehicles or granting debt financing to such companies. The issuer also assumes that projects of interest to Mercator Estates may be carried out individually, or in cooperation with external partners, in particular responsible for the management of those projects.
For the first stage of real-estate development activity in Mercator Medical Group, i.e. over 12 months, approximately PLN 150 million was allocated. The decision on whether to increase this amount will be made after assessing the effects of Mercator Estates’ operations to date.
Mercator Medical S.A., based in Kraków, is a manufacturer of disposable gloves and distributor of single-use medical materials. The company it is one of the most important players in Poland and a significant party on the international scene. The company’s history dates back to 1989.
Mercator Medical Group has a manufacturing centre in Thailand and is involved in distribution activities, including for products from third-party suppliers. It operates internationally, selling through its own distribution companies and third-party, local distributors in dozens of countries around the world.
In June 2023, a subsidiary of Mercator Estates was established to deal with real-estate development activities based on the Group’s financial surplus.
Since November 2013, Mercator Medical S.A. shares are listed on the regulated market at the Warsaw Stock Exchange. In March 2021, they were included in WIG20, the main stock market index, and since March 2022 they have been present in mWIG40.