Poland's Cyfrowy Polsat shares sink amidst billionaire owner family conflict

Cyfrowy Polsat SA

26/09/2024 17:42

GDANSK, Sept 26 (Reuters) - Shares in Polish media and
telecoms group Cyfrowy Polsat  CPS.WA  sank on Thursday, after
an escalation in a conflict between its billionaire founder and
majority shareholder, Zygmunt Solorz, and his children, who hold
key management positions in the company. 
    
WHY IT'S IMPORTANT
    
With a market capitalisation of 8.2 billion zlotys ($2.14
billion) Cyfrowy Polsat is Poland's second biggest
telecommunications service. Thursday's session wiped 673.2
million zlotys from the company's market cap, marking it's worst
day since February.
    
BACKGROUND
    
Polish daily Gazeta Wyborcza reported on Thursday that
management staff of Cyfrowy Polsat and three other group
companies had received a letter from three of Solorz's children.
    The letter expressed concern about their father's welfare
and warned them to be careful when accepting orders from people
who have recently acquired power in his businesses.
    According to Gazeta Wyborcza, the letter came against the
backdrop of a conflict between the three children and Solorz's
wife.
    In response, Solorz plans to remove his children from the
companies' boards, deeming them disruptive to stability and
future growth, according to a letter to his staff obtained by
the Polish Press Agency.
    
KEY QUOTE

"The fall in the share price is a direct result of investors'
concerns about how power over Cyfrowy Polsat is being
exercised." said Piotr Raciborski, WOOD & Company analyst.

($1 = 3.8268 zlotys)

 (Reporting by Anna Banacka and Tymon Miller; Writing by Rafal
Wojciech Nowak;)
 ((RafalWojciech.Nowak@thomsonreuters.com; +48 58 769 66 63;))