News Parkiet

Power industry

PAK shares may be returned to employees

Elektrim power and telecoms group may have to give up shares of Zespół Elektrowni PAK power plant purchased from its employees. Former senior executives at Elektrim subsidiaries, DM Penetrator brokerage house and Agencja Informacyjna Penetrator admitted they may have broken Polish laws during the buyback of 15 percent stake in Poland's second largest power plant.

Penetrator, which completed the buyback on Elektrim's behalf reportedly signed backdated contracts with PAK employees, which makes the sale invalid under the Polish law.

The case is being investigated by district attorney's office in Cracow.

Elektrim spent an estimated 200 million zloty to buy out 5300 PAK employees. It now has 38.5 percent stake in the company.

Mutual funds

Cooperative banks start selling mutual funds

Rural cooperative banks are turning into a new distribution channel for Polish mutual fund companies. About twenty funds have asked for SEC approval to start selling mutual funds in recent months. At the end of last year 28 out of 601 credit unions offered at least some mutual funds, Eugeniusz Laszkiewicz from the National Association of Cooperative Banks told PARKIET yesterday. ?Our clients already know you can?t make money by keeping your savings in low-margin term deposits?, says Laszkiewicz. Cooperative banks themselves invested over 200 million zloty in mutual fund units.

Mutual funds

Post Office to launch own mutual

fund company

Polish Post Office is setting up its own mutual fund company, leveraging one of Poland?s largest distribution networks. Sources at the company said the Post Office would file for regulatory permits by the end of June.

Known by its Polish name ?Poczta Polska?, state-owned Post Office already owns a small pension fund company OFE Pocztylion.

Telecommunications

TP reports 4.5 pct. earnings growth

Poland?s largest phone company Telekomunikacja Polska reported net earnings of 911 million zloty despite fourth quarter loss on provisions for severance payments and lower value of real estate assets. Net loss in the fourth quarter totaled 21.1 million zloty ($5.5 million) after provisions totaling PLN 480 million. Year-on-year earnings were up 4.5 percent. The company reported 4Q sales of 4.7 billion zloty, up 2.1 percent compared with the same period two years ago.

Petrochemicals

PKN Orlen estimates profits at 1.1 billion zloty

PKN Orlen oil refinery estimates net income rose to a record 1.1 billion zloty ($290 million) last year as a result of restructuring program and higher oil prices.

The company, which owns Płock refinery, Poland?s largest and the country?s largest chain of gas stations posted net earnings of 428 million zloty in 2002.

Detailed earnings figures will be announced on February 26.

Equity markets

Globe Trade Centre prepares for Warsaw IPO

Israeli property developer Globe Trade Centre (GTC) has filed for an IPO on Warsaw Stock Exchange with Polish Securities and Exchanges Commission (KPWiG). GTC said it wants to sell new stock to institutional investors, raising funds to expand its operations. Some of IPO proceeds would also be used to buy out parent company?s real estate subsidiaries in other CEE countries, including Hungary and the Czech Republic.

GTC is one of Poland?s largest and most successful property developers. Founded in 1994, it now owns Galeria Mokotów, Warsaw?s most popular shopping mall and the adjacent Mokotów Business Park office complex.

GTC has net assets of more than 1 billion zloty ($270 million), with annual sales at approximately 70 million US dollars. EBITDA margins in the first half of last year reached 58 percent.

Banking

BPH Bank won?t be delisted from WSE

Germany?s Hypovereinsbank has no plans to delist its Polish subsidCommenting on recent media reports on the possible merger with Commerzbank, HVB?s Chief Executive Officer Dieter Rampl said consolidation of the German market is ?inevitable?. However, he rejected any merger talk saying that HVB ?isn?t negotiating with any other bank at the moment?.

BPH Bank?s CEO Józef Wancer added his company is reiterating plans to double its Return On Equity to 20 percent by 2006. Wancer also said BPH Bank could raise its dividend for 2003.