News Parkiet

Banking & finances

AIB?s Polish unit could merge

with ING Bank Śląski

Senior executive from Allied Irish met with representatives of ING Groep in Poland several days ago, possibly to discuss future strategy of their Polish subsidiaries, sources told PARKIET yesterday. ING owns majority stake in ING Bank Śląski, while AIB has 70.5 percent of Bank Zachodni WBK.

Both Polish banks refused to comment on speculations about possible merger.

The two banks would have a combined 2.2 million bank accounts, overtaking BPH Bank as Poland?s third largest financial institution.

Textiles

Lentex goes shopping

Lentex flooring-maker is about to go on a shopping spree using 60 million zloty war chest accumulated over the years, its CFO said yesterday.

?I can?t name any names. Negotiations haven?t got very far yet?, says Jerzy Kusina, Lentex? Chief Financial Officer.

Former state-owned company privatized in mid-1990?s, Lentex makes PVC floor coverings. Its annual sales total approximately 170 million zloty.

The economy

IBnGR raises GNP forecasts

IBnGR economic think-tank has increased its GNP growth rate forecasts for the next three years, including 2004 on Tuesday.

Bogdan Wyżnikiewicz, an economist at the Institute of Free Market Research estimates the economy will expand by 4.5 percent this year, picking up speed to 4.9 percent in 2005 and 5.1 percent in 2006

Warsaw based institute sees continuing recovery in the manufacturing sector along with first signs of revival in construction. Polish construction sales shrunk 5.9 percent last year.

IBnGR also predicts unemployment rate will finally start declining in 2Q, 2004 after twenty consecutive quarters of job losses.

Chemicals

ZA Puławy recovers thanks

to export sales

ZA Puławy fertilizer plant posted net earnings of 85.3 million zloty in 2003, recovering from years of losses that almost put state-owned company out of business. Puławy, which exports over half its output also makes synthetic chemicals used in the production of polyamides and synthetic resins.

Polish government tried to privatize Puławy by selling the company on the Warsaw bourse three years ago, but the IPO failed due to valuation concerns and unfavorable market conditions.

Equity markets

PHOiMB to delist from CeTO

Shares of PHOiBM coal distributor will be delisted from CeTO over-the-counter market after its main shareholder offered to buy out other investors.

Progress Eco group said it would pay 0.12 zloty for all outstanding shares. Progress already owns about 70 percent of PHOiMB.

Kielce-based PHOiMB has annual sales of PLN 2 million zloty and market cap of just 230.000 zloty. Thinly traded company posted losses in 17 out of 19 quarters since 1999 and has negative book value of PLN 145.000.

Telecommunications

Energis Polska to increase sales

by 60 pct in 2004

Energis Polska data carrier says it expects 220 million zloty in revenue in 2004 after posting 54 percent sales growth last year. Founded in late 1990?s by UK-based National Grid, Energis Polska won 800 new corprate clients, showing positive EBITDA of 1.3 million zloty.

CEO Jarosław Mikos says Energis Polska has found veture capital fund that could inject as much as 10 million dollars in cash into the company within several weeks.

Pharmaceuticals

Farmacol buys Cefarm Szczecin

Farmacol drug wholesaler has agreed to buy former state owned pharmaceuticals distributor Cefarm Szczecin from its main shareholder, Silesian businessman Andrzej Olszewski. Publicly traded company has already paid 9 million zloty for 94 percent stake in Cefarm, which has 40 drug stores and strong position as wholesale distributor in north-western Poland. Its sales rose to 300 million zloty last year.