City Service Rises 5.2% on Step to Buy Polish ZZN: Vilnius Mover
City Service AB (CTS1L), the biggest Baltic building maintenance company, rose the most since March after saying it planned to complete the purchase of a Polish company by year-end to start expanding into central Europe.
The shares rose 5.2 percent in Vilnius to 1.82 euros, a 12- week high, valuing the company at 57.5 million euros ($75 million). Volume of 42,603 shares was eight times the three- month average, according to data compiled by Bloomberg.
Agreement this week with employees of Zespol Zarzadcow Nieruchomosci Wam Sp zoo about social benefits opened the way to completing privatization of the Polish facility manager in a privatization deal, City Service said today on in a statement on the Nasdaq OMX Vilnius exchange.
That would give it 3.4 percent of Poland’s residential facility management market and create opportunities for further expansion in central Europe, City Service said. It already operates in Lithuania, Latvia, Russia and Ukraine.
“We treat the news as positive,” investment bank Finasta in Vilnius said in a note to clients today. “The price City Service will pay for ZZN is relatively high, but at the same time it has proved many times that it is able to reorganize poorly working companies and transfer its own know-how.”
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