Allegro bought Mall Group and WeDo last November from Daniel Křetínský’s PPF groups, EC Investments and Jakub Havrlant’s Rockaway Capital. The transaction amount was approximately SEK 23 billion, while the book value exceeded SEK 21 billion.
After a year and only a few months after definitively acquiring the new acquisitions, Allegro recorded a non-monetary loss when it revalued the book value of Malla and WeDo and reduced it by 57 percent, or about 12 billion crowns.
“The board acknowledges that it agreed on the full price in November 2021 to acquire a scarce asset that would facilitate the transformation of Allegro into an international business and that, in hindsight, this price was set at the peak of the market cycle. Since then, many e-commerce companies have lost 50-70 percent of their market value,” the company said in its Message.
Mall Group’s Czech e-shops are bought by the Polish company Allegro
Economic
In it, he goes on to say that due to inflation and rising cost of living, both the Mall and WeDo have significantly fallen short of original expectations regarding their financial results. “The increase in inflation and borrowing costs caused a significant increase in the cost of equity capital, reducing the present value of the long-term cash flows that should have been generated,” added the Polish firm.
Allegro operates the Polish online marketplace Allegro.pl and the price comparison platform Ceneo.pl. The platform and Allegro.pl are visited by an average of 21 million users per month, which corresponds to 66% of the Polish population over the age of 16.
In addition to the online retailer Mall, the Mall group includes, for example, the electronics e-shop CZC.cz or the online supermarket Košík.cz.
Impulse buying threatens the wallets of Czechs, more than two fifths of people cannot resist on the Internet
Finance
