On 14 April 2015, the investment agreement concerning the expansion of Śląskie Wesołe Miasteczko was officially signed between Wojewódzki Park Kultury i Wypoczynku S.A. (“WPKiW”) and Tatra Mountain Resort, a.s. (“TMR”).
Before the transaction was closed, TMR and WPKiW had been negotiating for many months from the beginning of 2014. The negotiations were supported by the Law Firm of “Żyglicka i Wspólnicy”. In June 2014, the Parties agreed on and signed a letter of intent, which commenced the phase of analyses and negotiations concerning the details of the Slovakian tycoon’s involvement.
After ten months, the Parties prepared agreements in two language versions, which, together with appendices, are composed of approximately 2500 pages. The most important assumptions:
- The Agreement amounts to PLN 120 million, which TMR is to invest in Wesołe Miasteczko during 5 years.
- A new special-purpose vehicle will be established. Park Śląski will own 25 percent and TMR will held 75 percent of the vehicle.
- To the special-purpose vehicle, Park Śląski will contribute an organised part of Śląskie Wesołe Miasteczko, while TMR will make a cash contribution (initially PLN 27 million) and will contribute its know-how.
- Park Śląski will not transfer the land where Śląskie Wesołe Miasteczko is located.
- The land will be leased. The new company will lease the land. For the first 5 years the lease rent payable to Park Śląski will be PLN 1.4 million and thereafter the rent will be EUR 1 million per annum.
- After 5 years from the incorporation of the new company, TMR will buy 25 percent of shares from Park Śląski for PLN 10 million and will become the sole shareholder of the company.
- After years from the incorporation of the new company, the area of Wesołe Miasteczko will be expanded with new sites.
- The agreement provides for a number of contractual penalties and other clauses that secure the interest of the Parties.
Tatra Mountain Resorts a.s. with its registered office in Liptovský Mikuláš is the biggest provider of tourism services in Slovakia.
The Company is an owner and operator of ski resorts and hotels in the High and Low Tatra Mountains.
The Company has been listed in the Warsaw Stock Exchange since October 2012.
Thanks to its access to capital, TMR has capacities to restore Śląskie Wesołe Miasteczko to its former splendour and develop it as a modern centre that will meet Poles’ expectations.