Polski Bank Komórek Macierzystych (PBKM), a steam cell bank, is planning further acquisitions and is looking for a source of financing for them. One of the most probable options is to go public on the Frankfurt Stock Exchange.
PBKM: A good time for acquisitions
Despite the failure of the Cryo-Save acquisition negotiations (as we informed here), PBKM’s aptitude for acquisitions is not waning. The company has announced that it is targeting potential acquisitions worth approximately €60m. As Jakub Baran, the company’s CEO, stresses, in an interview with Puls Biznesu, there is now a favorable acquisition climate in Europe. This is because the European market is experiencing a decline in confidence and demand for stem cell banking services, especially in countries such as Italy, Spain and Switzerland. In addition, competition is fragmented. PBKM wants to take advantage of these opportunities.
Dual-listing: In London – no, in Frankfurt – perhaps
Since January, the company has been recently analysing possible options to obtain financing for acquisitions. It rejected raising capital from a private equity company and dual listing fund on the London Stock Exchange. The costs of listing in London would be too high for it. On the other hand, options for the next issue of shares on the WSE (where PBKM has been listed since May 2016) or dual listing on the Frankfurt Stock Exchange are still under consideration. The latter scenario is supported by the fact that German investors hold a total of about a quarter of PBKM shares.
The company will probably not attract a strategic investor, which was one of the analysed options. All for the fact that in the industry in which PBKM operates there are not many players larger than the company who could become potential investors. For large medical holdings, however, the company’s activity is too niche. Final decisions on how to obtain financing should be made within the next few weeks.