News Parkiet

Equity markets

Enterprise Investors cashing

in on WSE investments

Enterprise Investors raised an estimated 500 million zloty ($125 million) in 2003 selling stakes in several companies traded on the Warsaw Stock Exchange.

US private equity firm hit the jackpot selling majority stake in Stomil Sanok, a mid-sized maker of automotive components from southwestern Poland. Three EI funds sold majority stake in the firm in one of Poland?s first MBO transactions. In dollar terms, Enterprise Investors received seven times the amount it initially paid for Stomil Sanok. Two other highly successful transactions include 310 million zloty sale of Polfa Kutno, top publicly traded drug-maker and the sale of minority stake in Eldorado grocery retail chain.

Information Technology

Prokom to take charges after selling Wirtualna Polska

Shares of Prokom Software IT services group plunged 3.6 percent on Tuesday as investors worried the company won?t be able to recover part of 150 million zloty loan to majority-owned Prokom Internet (PI) subsidiary. Prokom?s Internet unit has sold its key asset, 21 percent stake in Wirtualna Polska web portal for 54 million zloty, leaving the firm with just over one third of the cash needed to repay loans owed to parent-company.

?Money that PI borrowed from Prokom has been lost long ago. Now, the parent company has to recognize that in its accounting books and make provisions for the loan?, says CDM Pekao equity analyst Sobiesław Pająk.

Analysts estimate, Prokom will be forced to take one-time charge of 100 million zloty ($25 million).

Banking

Tele-Fonika Kable refinances Pekao loans

Poland?s largest publicly traded bank Pekao S.A. and three other unnamed banks will lend an equivalent of 388 million dollars to Tele-Fonika Kable, Central Europe?s largest cable-maker. Privately held Tele-Fonika, founded over a decade ago by private businessman Bogusław Cupiał, will borrow 130 million euros plus 850 million zloty to refinance existing loans, Pekao said in a statement published late Monday. Prior to that, Pekao?s exposure to Tele-Fonika was limited to just under 1.4 billion zloty ($350 million).

Tele-Fonika Kable, which controls 79 percent of Poland?s cable production has annual sales of 2.1 billion zloty. Export sales account for over half of company?s revenue. Tele-Fonika says this year?s operating earnings will reach 170 million zloty.

Food industry

Coffeeheaven subsidiary eyes possible listing in Warsaw

CHI Polska, a subsidiary of UK-based Coffeeheaven International coffee store operator said it may consider raising additional equity to pay for local acquisitions. CHI, whose bonds are already trading on CeTO over the counter market in Warsaw, operates 18 coffee bars inside shopping malls in key Polish cities and is expanding into the Czech Republic. The firm, which is profitable and has annual sales of some 9.5 million zloty in 2002/2003 says it has enough cash to continue new store openings at the existing pace. The company may decide to go ahead with an IPO in Warsaw to finance purchases of smaller competitors, CHI?s Maciej Jania told PARKIET on Tuesday.

Equity markets

Handlowy?s brokerage house sees another fairly strong year ahead

Citigroup?s Dom Maklerski Banku Handlowego (DM BH) brokerage house expects heavy trading volume on the Warsaw bourse throughout next year, CEO Paweł Szymański said yesterday. Poland?s largest broker by trading volume sees at least two or three IPO?s in addition to Betacom software house, scheduled to go public in early 2004. BM BH will fight to retain no. 1 spot among Polish brokers, with approximately 20 percent market share. Poland has 21 active brokerage houses.

?We are still planning to expand our retail operations?, Szymański says adding DM BH will wait until Poland relaxes regulations on brokerage services offered through local bank