News Parkiet

Privatization

Poland to impose mandatory buy-out scheme

Polish government wants to change the country's corporate laws, forcing private investors to buy out minority stakes in companies sold as part of privatization deals. Jacek Socha's Treasury Ministry says investors who own more than 95 percent of former state-owned firms should buy its shares at market value. Poland still owns small chunks of more than 200 privately held companies, plus similar stakes in 31 corporations, whose shares are listed on the Warsaw Stock Exchange. The new law is supposed to take effect sometime next year.

Petrochemicals

PERN to pick new CEO soon

State-owned pipeline operator PERN SA has received eleven applications after announcing it is searching for a senior executive to replace CEO Stanisław Jakubowski, who was suspended for allegedly trying to bribe several Polish journalists. New chief executive will be selected in early October, chairman Krzysztof Czeszejko-Sochacki told PARKIET yesterday.

PERN, whose full name is Przedsiębiorstwo Eksploatacji Rurociągów Naftowych "Przyjaźń", operates a pipeline system stretching between Belorussian border and Germany. Another PERN pipeline connects PKN Orlen's main oil refinery in Płock, central Poland.

Petrochemicals

Ivax closer to Polish IPO

Polish regulator may give its final approval for the dual-listing of Miami-based Ivax Corporation at its next meeting on September 28, sources close to the situation told PARKIET this week. Ivax is seeking a dual listing in Poland after proposing a debt for stock swap in a friendly takeover of Polish pharma company Polfa Kutno. Polish IPO was reportedly delayed by hurricane Ivan, which hit the coast of Florida earlier this month and by the four-for-five stock swap announced by Ivax at the end of August.

Ivax is offering the equivalent of 340 zloty per each share of Polfa it doesn't already own. Polfa Kutno, which has less than 1.9 million shares outstanding, closed at 330 zloty ($92.1) yesterday in very light trading.

Building materials

Radpol 40-million zloty IPO seen at year-end

Radpol SA pipe manufacturer is expecting to go public within two or three months, after an IPO filing in mid-July, company officials said on Tuesday. Chief executive Andrzej Sielski says his firm is working to nearly double its operating profits within a year to eighteen months. Radpol, which is controlled by Tar Hell Capital, a US-Polish investment fund, reported operating profits of PLN 3.7 million on sales of just 19 million zloty last year.

By its own accounts, Radpol controls up to 70 percent of Poland's market for heat-shrinkable, plastic tubes.

Building materials

Tim to spin off real estate unit

Tim SA, a publicly traded electrical wholesaler, has announced plans to transfer all of its warehouses and other properties to a new, wholly owned real estate management company. Wrocław-based firm says the book value of its real estate holdings, some 15 million zloty in total.

Separately, Tim has reiterated earnings forecast of 9 million zloty on sales of approximately 200 million zloty after reporting profits of more than 5 million zloty in January to September period.

Information Technology

Veritas' Polish unit sees 30 pct. revenue growth this year

Veritas Software, local subsidiary of US storage software corporation Veritas Software is expecting 30 percent increase in sales to over 30 million zloty ($8.4 million) this year. Founded just three years ago, Veritas Software expanded by offering IT-related training to large corporate customers.

Labor market

SdPl demands tighter labor lawsSocjaldemokracja Polska, a new left wing party formed by SLD dissidents, is asking for more stringent labor regulations after an official report on late wage payments in Poland. PIP State Labor Inspection says workers lost almost 386 million zloty in wages that went unpaid last year. PIP report says over 40 percent of more than 68.000 companies that were audited last year owed back wages to at least some employees. SdPl's deputy Jacek Kasprzyk estimates the government may have lost 78 million zloty in unpaid taxes because of wage arrears.