News Parkiet

Steel industry

Stalprodukt probed

over suspicious asset sale

LNM Group?s main Polish subsidiary is looking into the sale of valuable assets by publicly traded Stalprodukt steel plant last month. Stalprodukt, which is controlled by LNM?s Ispat Polska Stal steel holding received just 10 million zloty for the 60 percent stake in STP Investment, a holding company that owns almost 700.000 of parent company?s shares. At the time Stalprodukt traded at about 52 zloty per share, valuing STP Investment at almost 35 million zloty. A few days later the stock went up again after Stalprodukt posted very strong first quarter earnings.

Stalprodukt consistently refused to name the buyers of STP Investment citing confidentiality requirements. However, its CEO Piotr Janeczek said they are ?unrelated? to company?s management. ?We had no way of knowing how much our stock will cost in May?, Janeczek said responding to charges that

STP Investment was sold below market value.

Publishing

WSiP tries to limit photocopying

WSiP textbook publisher has begun testing a new, online book distribution system that will reduce losses due to photocopying. WSiP, whose full name is Wydawnictwa Szkolne i Pedagogiczne said it will open up to 200 small publishing outlets to print custom-made academic textbooks and course materials.

Separately, WSiP chief executive Jan Rurański said the company may be listed on the Warsaw Stock Exchange as early as next month. The publisher, now controlled by the Polish government has already received regulatory approvals for its IPO.

Equity markets

PBG files for stock sale

PBG, Wielkopolska-based industrial services group said it expects Polish Securities and Exchanges Commission to authorize its plans to sell new stock worth ?tens of millions of zlotys? at its next meeting next week. The firm, which specializes in pipeline construction and related services says the stock could start trading on the WSE in July.

Net proceeds from the company?s stock sale will be used for international expansion. PBG has already active in Iraq, bidding for reconstruction work in that country.

PBG, which has approximately 280 employees, posted net profit of 11 million zloty on revenue of PLN 180 million zloty last year.

Insurance

Gerling to refocus on

corporate insurance

Polish unit of Atradius insurance group said it will no longer sell insurance to individual clients, refocusing on property and liability insurance for large corporations.

Towarzystwo Ubezpieczeniowe Gerling Polska inherited a small travel insurance portfolio from ATU insurance group when it first came to Poland ten years ago.

Gerling?s chief executive Witold Janusz expects a temporary drop in insurance premiums, but says its core business is much more profitable than retail business.

Gerling Polska is projecting a 9 percent decline in this year?s premiums from 98.4 to 90.8 million zloty. Net earnings are set to rise to PLN 4.4 million, or 1.1 million US dollars.

Pharmaceuticals

Prosper starts cash

drug-store sales

Prosper SA, one of four drug distributors listed on the WSE launched a new ?cash on delivery? program in an attempt to improve its position and market share. Warsaw-based company promises to daily deliveries to drug-stores across the country, offering 5 to 15 percent discounts on its regular price for cash payments.

Chief Financial Officer Piotr Jędrzejczak says the firm is hoping to increase its market share from 10 percent to approximately 12 percent.

Prosper has annual sales of approximately 1.6 billion zloty, or 420 million dollars. Net margins in the first quarter fell to just 0.4 percent.

Public finances

Poland cuts subsidies for

disabled employees

Polish government has changed its rules for subsidies paid to companies that employ disabled workers.One company affected, Impel security and cleaning group, Poland?s second largest private employer said it expects 10 million zloty less in subsidies this year alone. Meanwhile LPP clothing retailer, which has some disabled staff on its payroll gave up its special status in January.