Quercus TFI mutual fund inks strategic cooperation agreement with Franklin Templeton Group

As reported, Quercus TFI will merge with Templeton Asset Management (Poland). As a result of this operation, Franklin Templeton will acquire approximately 0.7 million shares in Quercus TFI as part of the merger.

In addition, Franklin Templeton will acquire approximately 4 million Quercus TFI shares at a price of PLN 10 (EUR 23.58) for a cash contribution. After these transactions, Franklin Templeton will hold in total approximately 4.7 million shares (9.0 percent of the current number of shares).

A resolution of the general meeting of Quercus TFI will be required to increase the share capital.

Registration of the merger between Templeton Asset Management (Poland) TFI (FT Poland) and Quercus TFI is expected no later than December 31, 2025. The merger will require the approval of the head of Poland's antitrust and consumer protection regulator UOKiK.

"The management boards accept that the shares of the new issue of Quercus TFI issued to the shareholder FT Poland will entitle to a share in the profit of Quercus TFI for 2025, subject to the commitment that Franklin Templeton Global Investors Limited will not participate in a possible buyback of Quercus TFI shares in 2026, (if this does not result in reaching the threshold of 10 percent of shares/votes), which will allow to increase the involvement to close to 10 percent of the total number of votes of the company," Quercus reported.

The parties agreed that as at the date of the merger, FT Poland will have bank balances and equivalents of PLN 7 million (EUR 1.65 mln).

Quercus TFI's CEO Sebastian Buczek said that this is the first stage of strategic cooperation with Franklin Templeton, mainly in the product and sales area.

"We hope to strengthen our market position and boost our growth in the future, in particular by further developing our relationship with the largest Polish banks in the private banking client segment," CEO Buczek said, as quoted in the press release.

Sandeep Singh, regional head of CEEMEA and India at Franklin Templeton, said that this merger will allow the company to better tailor its offering to Polish investors, focusing efforts on the distribution of global investment solutions.

"At the same time, our investors will gain greater access to local investment expertise with a leading Polish asset manager. Going forward, we will focus our efforts on distributing the Luxembourg fund offering to Polish investors," he added.

"We are pleased that in Quercus we have found a strategic local partner that can leverage our global strategies when needed. We are also pleased that through this merger we will be able to expand our current cooperation with Dom Inwestycyjny Xelion," Singh continued.

He stressed that Poland remains a key strategic market for Franklin Templeton's operations in Central and Eastern Europe, with offices in Poznan and Warsaw.

pel/ pr/ ao/