News Parkiet

Privatization funds

NIF index hits five-year high

NIF index, which tracks performance of the mostly forgotten 14 privatization funds that went public in 1997 rose almost 5 percent to a five-year high of 85.64 points yesterday as investors tried to cash in on buybacks and asset sales. Virtually no equity analysts follow the funds, which have extensive cross-holdings and own small stakes in hundreds of former state-owned companies across Poland. The funds, which traditionally trade at a significant discount because of poor asset quality are now distributing their substantial cash holdings buying back massive amounts of own stock on the WSE.

Privatization

JSW mine holding may be sold through

the stock exchange

Jastrzębska Spółka Węglowa mine holding may be listed on the Warsaw Stock Exchange next year, deputy Treasury Minister Tadeusz Soroka said yesterday. Soroka, who oversees various privatization and asset sale programs said the government could sell minority stake in one of Europe?s largest remaining coal mines by late 2005.

Railways

Unions move in to block PKP sale

Solidarity trade union at Polish State Railways (PKP) say they are opposing any plans to privatize key part of the company, PKP Cargo freight carrier. The unions found an unlikely ally in Business Centre Club, one of Poland?s largest business organizations which said the government has to restore PKP?s financial liquidity first.

Venture capital

EI buys Harper Hygienics for PLN 118.6 million

Enterprise Investors venture capital fund paid 118.6 million zloty to buy 75 percent interest in Harper Hygienics tissue maker from a group of individual investors in an LBO partially financed with a bank loan.

Sources at Enterprise said the fund expects annual returns of approximately 30 percent on its latest investment.

Telecommunications

Multimedia may be listed on WSE

Multimedia Polska, Poland?s second largest cable company controlled by the Netherlands-based UNP Holdings may go public on the Warsaw Stock Exchange, sources familiar with the situation told PARKIET on Wednesday. Multimedia, which has 475.000 cable and 45.000 broadband subscribers could raise as much as 250 million dollars in an IPO through ING Securities.

Information technology

Techmex drops below IPO price

Shares of Techmex notebook distributor fell 2.3 percent from the IPO price on their first day of trading in yet another sign the market may be overheating. The company, which raised an estimated 90 million zloty in a heavily oversubscribed stock offering in late April begun trading at 31.8 zloty, or 6 percent above its IPO price of 30 zloty per share. It fell below 30 zloty within minutes as investors dumped the stock because of worse than expected Q1 earnings.

Earlier this month Techmex posted first quarter earnings of just one million zloty as the company reduced its low-margin hardware sales. Revenue was down 17 percent to 83 million zloty, while operating income plunged almost 40 percent to PLN 3.1 million.

Wednesday?s debut is the first IPO in well over a year to start trading below the offering price.

Banking

Bank Austria up on dividend payment

HVB Group?s Bank Austria Creditanstalt, whose shares are listed on the Warsaw Stock Exchange, rose 4 percent to 210.5 zloty on a record date for its annual 1.02 euro dividend payment. The bank?s shareholders will receive about one-third of last year?s earnings of 3 euros per share.

The bank, which owns Poland?s third largest lender BPH Bank and owns other financial institutions across Central and Southern Europe posted first quarter earnings of 133 million euros, up 31 percent from the same period last year. Return On Equity rose to 8.9 percent because of various cut-cutting measures and stronger earnings by CEE units.