(Bloomberg) — Polish billionaire Zygmunt Sorolc has forced his two sons out of the business, deepening a family feud over control of his conglomerate, causing its valuation to fall and a powerful minority investor Concerns have increased.
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Mr. Sorolc's investment company, which controls Warsaw-listed electricity company ZE PAK SA, removed Tobias Sorolc and Piotr Zak from its supervisory board at a shareholders' meeting on Monday. Shares have fallen as much as 3.3% and are nearing their lowest closing price since 2022.
“We are very concerned about the current situation and the conflicts between families,” NN Group NV Polish Pension Fund CEO Szymon Ozog told Bloomberg. The fund owns 8.9% of ZE PAK, making it the company's second-largest minority shareholder, according to data compiled by Bloomberg.
The development comes amid uncertainty surrounding the Sorolts Empire, which in addition to electricity production also includes the media and mobile group Cyfrowy Polsat SA. Last month, his children sent a letter to management expressing concern about an alleged attempt to take over the company, stating that health reasons make it difficult for them to contact the billionaire and his current wife, Justina Kulka. He added that he was in conflict with the government.
The 68-year-old billionaire briefly attended Monday's ZE PAK shareholder meeting via video, sitting next to his lawyer at an undisclosed location. At times, Thoroltz was unable to speak clearly when asked by attendees at the shareholder meeting if he could repeat his comments. His lawyer can then be heard telling Mr Soroltz to repeat his statement and pointing to the paper the billionaire was reading.
“Legitimate concerns”
The reorganization of ZE PAK's board of directors will take place the day before Cyfrowy Polsat SA's scheduled meeting, where the agenda also envisages a vote on board changes.
“There are legitimate concerns about Zygmunt Sorolc's health,” NN's Ozog said after the power company's general meeting. “Rather than focusing on strategy and development, management's focus will be on succession, personnel changes, and determining who will actually control ZE PAK and Cyfrowy Polsat in the future. .”
A spokesperson for Mr. Sorolz did not immediately respond to calls and text messages from Bloomberg News seeking comment.
Sikhrowy Polsat's share price fell by as much as 1.4% on Monday, extending the decline to 67% from its 2021 high.
(Recast first paragraph with comment from NN's pension fund.)
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