News Parkiet

Banking

Cooperative banks give up their BGŻ stake

Rural cooperative banks have agreed to sell most of their 30 percent stake in Bank Gospodarki Żywnościowej, a mid-sized lender specializing in agricultural and food processing industry, sources close to the situation told PARKIET yesterday. Polish banks will receive an estimated 381 million zloty ($118 million) for their stake in BGŻ.

The most likely buyer, the Netherlands-based Rabobank, already owns 13.76 percent of BGŻ. Once the deal is finalized, Rabobank together with the European Bank for Reconstruction and Development would control over half of BGŻ voting stock.

Privatization

Bogdanka IPO may be delayed, Treasury says

Planned IPO of Bogdanka coal mine may be delayed by at least twelve months unless it merges with Elektrownia Kozienice power plant, deputy Treasury Minister Dariusz Marzec said yesterday. Bogdanka, which boasts the lowest production costs in Poland, fears it would be marginalized by the much larger Kozienice.

It plans to raise its annual output from 5.5 to 9 million tons before the IPO next year.

Retailing

Polmos Białystok worth less because of Pernod Ricard contract

The value of Polmos Białystok, the maker of popular Żubrówka 'bison-flavored' vodka may be lower than initial estimates because of the five-year contract with Pernod Ricard, which gives the French company exclusive rights to sell Białystok's key product on the European markets. The contract expires in 2006, Polmos CEO Jerzy Małachowski told PARKIET yesterday. Polmos Białystok paid PLN 23 million for Żubrówka in a government-sponsored auction back in 1999.Poland plans to sell Polmos in a privatization IPO sometime next year. Pernod Ricard, which already owns Wyborowa, another popular brand, may bid for a majority stake in Białystok-based company.

Pharmaceuticals

Jelfa to complete major upgrades program

Przedsiębiorstwo Farmaceutyczne Jelfa drug and ointment maker will spend as much as 90 million zloty ($28 million) to modernize its tablet production department early next year, the company said yesterday. Publicly traded Jelfa plans to raise its market share to at least 2.7 percent by 2008, becoming one of Poland's top ten drug manufacturers. To do so, Jelfa will have to more than double domestic sales in just four years. Revenues of the company, which is controlled by the Polish government, totaled PLN 253 million last year.

Building materials

Koelner up 3.2 pct. on IPO

Shares of metal fixtures manufacturer Koelner SA rose 3.2 percent to close at 11.35 zloty on the first day of trading on the Warsaw Stock Exchange days after its 90 million zloty Initial Public Offering. Rights to shares, representing shares issued by the company that are not officially registered by the court, also closed at 11.35 zloty. Koelner and its founders, Koelner family, sold about 8.2 million shares at 11 zloty each.