News Parkiet

Banking

PKO BP?s IPO terms unfair,

competitors say

Competing banks and stock brokers are unhappy about the proposed IPO incentives for the customers of PKO BP, the country?s biggest lender, which is scheduled for privatization later this year. Polish Treasury Ministry said it would set aside a number of PKO BP?s shares for individual investors, who also have accounts there. Treasury officials refused to elaborate on the plan, but other banks worry more investors will be prompted to switch over to PKO BP before this year?s biggest IPO. PKO BP has over 5.2 million personal accounts.

Insurance

Polish insurers plan international expansion

Polish insurance companies are increasingly turning east in an attempt to expand their businesses. Aviva?s Commercial Union Polska and Grupa PZU have already spent millions on acquisitions in the neighboring Lithuania, while Poland?s sole reinsurer, PTR, bought Ukrainian insurer Skide-West.

Information Technology

Comp Rzeszów to buy Slovak company using IPO proceeds

Comp Rzeszów SA has announced plans to buy Slovak software house specializing in financial services industry using proceeds from an IPO scheduled for mid-September. Polish company said it has already made preliminary arrangements to buy Asset Soft, one of top five Slovak IT services firms. Comp expects to pay approximately 36 million zloty for its first international acquisition. It has agreed to buy 55 percent of Bratislava based company.

The IPO itself, set to begin on September 7, may be worth 35 million zloty, Comp said. In addition to 450.000 new shares, Comp Rzeszów minority shareholder, Enterprise Investors, a venture capital outfit, plans to sell 1.545 million existing shares.

Privatization funds

Zelmot may turn into an SPV

after asset sale

Former car parts maker Zelmot SA may turn into a Special-Purpose Vehicle for its shareholder, NFI Progress privatization fund. Zelmot, which used to make electronic and electrical components, is selling off its production equipment and the remaining stock. It has also published a newspaper ad seeking buyers for its 21.500 square-meter property in Warsaw?s Ochota district, at ul. Łopuszańska street, near Okęcie airport. Based on back of the envelope estimates, former Zelmot factory may be worth as much as 10 million zloty, not including buildings themselves and the remaining equipment.

Telecommunications

PTC posts higher 2Q profits

Polska Telefonia Cyfrowa reported second-quarter earnings of 347 million zloty, or 96.5 million US dollars yesterday, up from PLN 121.2 million last year. Poland?s top mobile phone company said its second quarter revenue totaled 1.6 billion zloty, a gain of 16 percent from the same period a year ago. PTC, better known to most Poles by its ?Era? and ?Heyah? brand names, said it has raised projected sales growth rate from 10 to 13 percent.

The company is co-owned by Polish power industry conglomerate Elektrim SA, Vivendi Universal and Deutsche Telekom.

Steel

Złomrex makes a bid to buy Huta Andrzej

Złomrex SA, a privately held scrap metal trader from southern Poland, has made a 25-million zloty bid to buy the assets of Huta Andrzej steel plant. The sale will go through if and when WR Jedność pipe-making plant, which leases Huta Andrzej?s assets, agrees to waive its right of first refusal to buy the company, court-appointed bankruptcy administrator told PARKIET.

Złomrex, which expects annual sales of 350 million dollars in 2004, said it would use its own sources of scrap metal to restart Huta Andrzej. ?Our plans for Huta Andrzej are very simple - we want to start production of seamless steel pipes there?, Złomrex founder and CEO Przemysław Szuczkowski says.

Privatization

Eureko hoping for settlement over PZUPan-European insurer Eureko BV said once again it hopes for an amicable settlement with the Polish authorities over the privatization and planned IPO of Grupa PZU, the country?s largest insurer. Successive Polish governments have blocked privatization of PZU for several years now, after selling 31 percent stake in the group to Eureko and its allies. Eureko?s vice chairman and executive director Ernst Jansen dismissed allegations that his company doesn?t have the money necessary to buy controlling stake in PZU. KNUiFE insurance industry monitoring agency claimed recently that Eureko, which has net assets of more than 2.5 billion euros and S&P?s investment-grade rating that is higher than Poland?s own, has just 25 million euros in spare cash for the acquisition.