The two largest shareholders of LPP, the Semper Simul Foundation and the Sky Foundation, have decided, as announced today, to swap ordinary shares for preferred shares between these entities.
In the opinion of the company's management, this opens another stage towards securing the succession of the Polish clothing manufacturer. The actions taken are a guarantee of permanent and stable management of the company and another step towards the development of LPP as a Polish family business for generations.
The decision announced in 2018 by the President and founder of LPP Marek Piechocki to concentrate private property, including the company's shares, in a family foundation gave rise to the implementation of activities planned for the following years to ensure the continuity of business functioning for nearly 30 years. In the opinion of LPP's Management Board, the decision to convert ordinary shares into preferred shares between the company's main shareholders is in the company's best interest. It is a confirmation that its stability, in such difficult times for the whole industry, is of paramount importance to its founders.
Under a conditional agreement between the shareholders, the Semper Simul Foundation will dispose of a block of ordinary shares to the Sky Foundation and will acquire a block of registered preference shares from it, thus becoming the majority shareholder of LPP. The intention of the decisions taken by the shareholders is the long-term development of the company and securing its Polish capital.
LPP: family character as a guarantee of stability
- The family character of LPP is a guarantee of predictability and stability of the company's functioning in the long term. Today, in such uncertain and difficult times for us all, it is a value that cannot be overestimated. I am convinced that both our employees, partners and contractors have received today another proof that LPP was, is and will always remain a Polish family business - comments Marek Piechocki, President of the Board of LPP and adds: - Personally, as the person who has always been responsible for the day-to-day management of the company, I perceive the decision of the two largest shareholders of LPP to leave the helm in the hands of one of the founders as an expression of trust and confirmation of the durability of this decision.
In the opinion of the Management Board, the actions of the leading shareholders of LPP are not related to the current activities of the company. However, it confirms the sustainability and stability of the company's long-term business objectives and strengthens the conditions for its development in the coming years. Leaving the responsibility for management and strategic decisions in the hands of one of its two founders is also a guarantee that LPP will remain a Polish company building its capital based on values that have remained unchanged for years, which is reflected in the position of the company on the economic map of the country.