News Parkiet

Telecommunications

Polish shareholders still plan joint sale

of Polkomtel

Three state-controlled conglomerates must work together selling their 60 percent stake in Polkomtel SA, the smallest of Poland?s three mobile phone companies, government officials said yesterday. KGHM mining group, PKN Orlen oil refinery and PSE power grid operator will pick an advisor to sell their Polkomtel shares in six weeks or less.

Mutual funds

Hexus to launch Polish mutual fund company

Swiss money management firm Hexus Capital Management will ask for SEC?s authorization to launch its first mutual fund in Poland, sources told PARKIET recently. No details are available at this time, but Geneva-registered group plans to sell its investment products to both individual and institutional clients here. Poland?s nineteen existing mutual fund companies manage assets worth over 35 billion zloty ($9.9 billion).

Retailing

Eurocash to go public next year

Eurocash SA, a small-town cash & carry FMCG wholesaler, has filed for IPO with the Polish SEC on Wednesday, chief executive Luis Amaral told PARKIET yesterday. Mr. Amaral, who remains the sole owner of Eurocash after an MBO deal with Portugal?s Jeronimo Martins, wants to sell part of his stake in an offering scheduled tentatively for the end of March next year.

Eurocash didn?t say if the company plans to raise additional funds through its WSE offering.

Eurocash operates Poland?s third largest chain of cash & carry outlets, selling groceries, inexpensive cosmetics and household cleaning products from 83 outlets across the country. It sells mainly to small ?mom and pop? grocery stores and independent local supermarkets. In addition to its wholesale business, Eurocash runs Poland?s biggest franchise grocery store chain, with over 1800 outlets. The group reported operating income of PLN 14.8 million on sales of more than 900 million zloty ($253 million) for the seven months to August.

Steel industry

FAM sets IPO price

Maker of specialty steel products FAM SA has announced new details of its IPO, which begun on Thursday. Chełm-based company said it plans to sell up to 1.2 million shares at 17 zloty, near the bottom of its indicative range of 16 to 19 zloty. Existing owners of FAM plan to sell 371.000 shares.

FAM, which makes cast iron components used by building contractors and furniture-makers, could raise approximately 20.4 million zloty minus IPO-related expenses. The offering is sold through Millennium Dom Maklerski of Bank Millennium financial group.

?I?m satisfied because at that price we will have sufficient funds for our investment program?, chief executive Janusz Michalak says. ?The IPO price is much lower than recent estimates by stockbrokers?, Michalak adds. Millennium DM and BDM PKO BP said the stock is worth 20.6 zloty and 22.15 zloty respectively.

Venture capita

Capital Partners to sell Swiss asset

management products

Capital Partners investment group has signed a deal to distribute asset management and hedge fund products of Man Group plc and its Swiss subsidiary Man Investments AG. Polish firm has plans to sell new products to local pension funds, insurance companies and asset management firms.

Petrochemicals

Orlen earnings could top PLN 2 billion

Net earnings of PKN Orlen, Poland?s main oil refinery, could double to more than 2 billion zloty ($562 million, PLN 4.67 zloty per share) this year for the first time ever. The group reported six-month earnings of PLN 1.1 billion, more than its total profits last year. In addition to cost-cutting and restructuring efforts, Orlen?s bottom line performance received a strong boost from higher oil prices on the international markets and retail margins at home. Return On Invested Capital (ROIC), a key performance measure, is higher than Orlen?s Weighted Average Cost of Capital (WACC) fo

Power industry

CEZ planning acquisitions in Poland

Czech power company CEZ is looking at potential takeover targets in Poland, senior executive responsible for mergers and acquisitions said yesterday. Czech Republic?s biggest energy holding will consider both local power grid operators and power plants, Vladimir Schmalz said at a meeting at his country?s embassy. ?We have earmarked 3 billion euros for investments and in addition to Poland we are targeting Slovakia, Romania and Bulgaria?, Schmalz said.