News Parkiet

Mutual funds

Mutual fund earnings triple thanks

to WSE rally

Total earnings of Polish mutual fund companies rose to approximately 100 million zloty last year compared with just 31 million in 2002. Estimates by PARKIET show assets under management were up from 22.8 to 33.2 billion zloty at the end of December. Higher earnings came after mutual fund clients started switching from bond to stock equity funds, which typically carry higher fees.

Preliminary data shows just two out of 16 mutual fund companies lost money last year. Top mutual fund group, PKO/Credit Suisse, doubled its earnings to 40 million zloty ($11 million).

Private equity fund

Getin Holdings buys GBG Bank

Getin Holdings investment company, a publicly traded firm controlled by Polish businessman Leszek Czarnecki has agreed to buy 71 percent stake in Górnośląski Bank Gospodarczy, a small regional bank from Silesia. Getin said the transaction will be financed by 300-million zloty stock sale later this year.

The seller, BPH-PBK Bank will receive 255 million zloty, posting earnings before taxes of some 70 million zloty.

GBG?s minority shareholder, Kopex mine construction group said it would sell its 10.3 percent stake to Czarnecki?s partner in the deal, JNR private equity fund owned by Nathaniel Rothschild.

Equity market

Mostostal fined over disclosure practices

Polish Securities and Exchanges Commission has fined Mostostal Siedlce construction group after the company failed to publish official press release on loan guarantee on behalf of its parent company. Mostostal told BRE Bank it would help repay overdue loan owed by privately held Polimex-Cekop if necessary, without telling its own minority shareholders.

Publicly traded firm will have to pay 75.000 zloty, or 20.000 US dollars for violating Polish securities regulations.

Construction industry

Elektromontaż to receive public assistance, stock surges

Shares of Warsaw construction company Elektromontaż Export rose 47 percent on Wednesday after the company said it has secured loans and loan guarantees of the Polish Industrial Restructuring Agency. One of several penny stocks popular with local speculators, Elektromontaż was up 0.27 zloty to close at 0.9 zloty, its highest since mid-2002.

State-owned Industrial Restructuring Agency, which helps state-owned companies said it would give Elektromontaż 19-million zloty loan plus 16 million zloty in loan guarantees until the company completes its restructuring plan by January 2006.

Elektromontaż has already asked creditors for 20 to 40 percent debt reduction. The group, which makes and installs switchgears and other electrical equipment in Poland and in neighboring countries, owes some 140 million zloty. Its own equity has turned negative after massive losses last year.

Seafood

Wilbo opens new restaurant chain

Wilbo fish and seafood maker has announced plans to open a national restaurant chain in key Polish cities. Publicly traded company said it would spend 3.5 million zloty to set up six trial restaurants located in its home Trójmiasto area in north-central Poland and in Warsaw by the end of May. New seafood themed restaurants will be called ?PescaBar, after Wilbo?s popular fish sticks brand.

Media

?Życie? comes back thanks to AIB Investments

Polish daily ?Życie? will be relaunched today after one year?s absence due to bankruptcy of its former publisher. The project will be financed by UK?s Barclay?s Bank and AIB Investments.

Its ad campaign will cost approximately 5 million zloty.

Życie?s editor Tomasz Wołek said the paper will try to sell 100.000 copies within a year. Industry sources say the new daily will be competing against Poland?s paper of record ?Rzeczpospolita?.

Petrochemicals

Mazeikiu refinery to enter Polish marketYukos-owned Lithuanian Mazeikiu refinery will start selling its products in north-eastern Poland, the head of its Polish unit told PARKIET yesterday. By the end of this month Lithuania?s largest refinery will lease storage space from Naftobazy oil terminal operator, Włodzimierz Olbrycht said.