Zygmunt Solorz, a Polish billionaire, has removed his two sons from the supervisory board of ZE PAK SA, a Warsaw-listed power producer. The decision was made during a shareholder meeting on Monday, deepening a family feud over control of Solorz’s conglomerate. The stock of ZE PAK fell as much as 3.3% following the news, heading for its lowest closing level since 2022.
Szymon Ozog, CEO of NN Group NV’s Polish pension fund, which owns 8.9% in ZE PAK, expressed concern about the current situation and the family conflict. The development comes amid uncertainty over Solorz’s empire, which includes Cyfrowy Polsat SA, a media and mobile group, in addition to power production. Last month, Solorz’s children sent a letter to managers, voicing concern over alleged attempts to take over the firm and their difficulties in contacting the billionaire due to his health and conflict with his current wife, Justyna Kulka.
During the ZE PAK shareholder meeting, the 68-year-old billionaire briefly joined via video, sitting next to his lawyer at an undisclosed location.
Family feud impacts ZE PAK governance
Solorz had trouble speaking clearly at times, with a participant asking him to repeat his comments.
His lawyer was heard telling Solorz to repeat his statement and pointing to a piece of paper from which the billionaire was reading. The reshuffle in ZE PAK’s board comes a day before Cyfrowy Polsat SA’s meeting, with the agenda also envisaging votes on board changes. Shares in Cyfrowy Polsat declined as much as 1.4% on Monday, extending their drop from 2021 highs to 67%.
NN’s Ozog expressed justified concern for Solorz’s health and noted that instead of focusing on strategy and development, the management boards’ attention will be focused on succession, personnel changes, and determining who will control ZE PAK and Cyfrowy Polsat in the future. The situation highlights the complexities that arise when family interests intersect with business operations, especially in major corporations. As Solorz navigates this intricate landscape, the outcome could set precedents for how family-run firms manage internal conflicts and governance challenges on a broader stage, affecting investor relations and public perception.
