On June 10, 2025, Polska Grupa Militarna S.A. (PGM) and Grupa Niewiadów S.A. (GN) signed a joint venture agreement (JV Agreement) with FORUM 119 Closed-End Investment Fund, managed by the Fidera Group. Under the agreement, financing totaling PLN 250 million was secured.
Go to the report (newconnect.pl).
The funds raised will be allocated to a strategic project in the defense sector—the construction and launch of a modern manufacturing plant with a planned production capacity of 120,000 units per year, expandable to 180,000 units per year.
Signing this agreement is not only a negotiating success, but above all the best proof of our consistent efforts to strengthen national defense capabilities. Securing this funding allows us to begin implementing a project that will increase the country’s capacity to produce advanced ammunition, addressing Poland’s real needs. This is a concrete investment in national security as well as the country’s technological and industrial development. The partnership with the Fidera fund provides us not only with a stable capital base but also with the support of an experienced and highly competent partner. In our view, this agreement, which enables the Group’s continued dynamic growth, will contribute to the implementation of our plan to list our shares on the regulated market of the Warsaw Stock Exchange (GPW),” emphasizes Grzegorz Niedzielski, President of the Management Board of PGM S.A. and the Niewiadów Group S.A.
The closing of the transaction with the Fidera fund confirms the confidence in our vision for growth and the direction we are taking as an organization following the ambitious merger of the two groups. The signed agreement significantly strengthens both our financial position and our operational capabilities, laying a stable foundation for strategic projects. This allows us to move from the preparation stage to the implementation phase and begin deploying modern technologies that will become a pillar of national defense capabilities in the coming years,” notes Radomir Woźniak, Vice President of the Management Board of PGM S.A.
Details of the agreement
The financing arrangement agreed upon by the parties for the project described above provides for:
- Fider’s acquisition of 20 million Series K shares of the Issuer in exchange for PLN 100 million;
- Fider granting a loan to ZSP Niewiadów in the amount of PLN 30 million, with a 24-month repayment term, intended for the strategic and technological development and modernization of ZSP’s assets, as well as to secure the performance of the contract regarding the ammunition processing line;
- Fider's direct investment in EG Polska in the amount of PLN 120 million, in exchange for a 65% stake, intended for the development of its production capacity.
A key component for which the raised funds will be allocated is the construction and commissioning of a modern production line for 155 mm ammunition, with a planned production capacity of 120,000 units per year, expandable to 180,000 units per year. Additionally, the companies intend to utilize public subsidies, which may further accelerate and expand the scale of the investment. It should be emphasized that following the conclusion and execution of the JV Agreement, ZSP Niewiadów will remain 100% owned by the Niewiadów Group (which is 100% owned by PGM S.A.).
The processing plant will be built as part of a joint investment by ZSP Niewiadów and Fidera in the company EG Polska. In addition to its capital investment, ZSP Niewiadów will also provide personnel and technical support for the project. ZSP Niewiadów will remain 100% owned by the Niewiadów Group and will also have a direct influence on the management of EG Polska and key decision-making.
EG Polska will remain a subsidiary of the PGM Group, which has committed to providing a loan of PLN 55 million to GN to finance ZSP’s operational activities related to ore processing.
A major player in Poland's defense sector
The merger of Polska Grupa Militarna S.A., listed on the NewConnect stock exchange, with Grupa Niewiadów S.A., a recognized manufacturer of specialized equipment and solutions for the military and civilian sectors, has resulted in the creation of a new corporate group with enhanced operational and technological capabilities.
The integrated entity operates in the defense sector in the broadest sense. The Group also includes companies specializing in the development of unmanned systems (drones), dual-use products, military logistics, and advanced technologies for the military. The Group holds a license from the Ministry of the Interior and Administration for the production and storage of ammunition, the trade in military products, and develops advanced solutions tailored to the needs of the modern battlefield.
One of the Group’s most important assets is ZSP Niewiadów— a company with over 100 years of history in defense manufacturing and experience supplying the Polish Armed Forces. The Group is currently implementing a strategic project to build a modern 155mm ammunition factory, addressing the growing defense needs of Poland and its allies. 155 mm ammunition is a key component of military equipment worldwide.
Thanks to the scale of its operations, complementary areas of expertise, and state-of-the-art technological infrastructure, the Group has established itself as a leading defense industry holding company—one of the most comprehensive and rapidly growing private entities in the country. The Group’s products are sold both domestically and internationally.
Growing demand for 155 mm ammunition
According to the Management Board’s estimates, taking into account the planned level of military equipment, Poland’s strategic requirement for 155mm ammunition is approximately 3 million rounds.
155mm artillery ammunition is a key component of military equipment worldwide. In Ukraine, 155mm ammunition plays a crucial role in combat operations, where between 3,000 and 10,000 rounds are fired daily. Before the outbreak of the war in Ukraine, the price of ammunition ranged between $2,000 and $3,000 per round. Due to increased demand and rising production costs, prices have risen significantly—reaching from $6,000 to over $10,000 on the European market.
Since the start of Russia’s invasion of Ukraine, there has been a fivefold increase in total production of 155mm ammunition among the three largest European manufacturers. It is estimated that by 2027, total production will be more than eight times the pre-invasion level.