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Enterprise Investors mulls selling Polish housebuilder Danwood, say sources: Reuters

Private equity fund Enterprise Investors may sell Polish energy-efficient housebuilder Danwood, three sources familiar with the matter said on Wednesday.

Enterprise Investors, one the biggest buyout firms in Central and Eastern Europe, bought Danwood in 2013 from Polish construction firm Budimex for around 240 million zlotys ($65 million).

“Enterprise Investors plans to sell Danwood to an investor or list it on the bourse,” a person familiar with the situation said.

Two other sources confirmed the plan and added it was more probable the fund would sell Danwood to an investor rather than list it on the bourse.

Enterprise Investors declined to comment.

Despite some uncertainty over the policies of the ruling conservative Law and Justice party (PiS), Poland has seen a number of sizable M&A transactions in the past few months involving private equity funds.

Those include the sale of e-commerce business Allegro in October and retail chain Zabka in February.

Also, the Warsaw Stock Exchange has attracted new companies with significant share offers, something not seen in Poland in recent years. Enterprise Investors, for example, sold its 49-percent stake in retain chain Dino in an initial public offering in April.

Danwood’s net profit rose to almost 34 million zlotys last year from 25.6 million in 2015 on sales of 665 million zlotys in 2016 and 518 million in 2015.

The company, which was set up 20 years ago and employs 1,550 workers, has the capacity to build 1,000 energy-efficient houses per year.