News Parkiet

Power industry

Elektrim reduces bid for employee-held stake in PAK

Elektrim subsidiary Elektrim Volt will buy 30 percent of shares still held by employees of PAK power plant. Warsaw-based conglomerate is offering just 133.9 zloty per share, some 45 percent below the price set in PAK privatization deal several years ago. Trade unions at the plant, one of Poland's largest power producers say Elektrim's bid violates the terms of privatization contract.

Piotr Rybiński, senior member of KNZSS Solidarity union at PAK says at these terms Elektrim may buy less than 1 percent of employee stock. Rybiński also questions Elektrim's choice of Agencja Informacyjna Penetrator, which handles the buyout, scheduled to end by Christmas. Union official claims AI Penetrator, another company that is part of Elektrim group, broke previous contracts it signed with PAK employees. 'We'll see if we can file charges with the SEC and with local prosecutor. We won't let it go just like that', Rybiński says.

Elektrim has already promised to buy half of employee-owned PAK shares next year.

Equity markets

Forte announces new stock sale

Forte S.A. furniture maker has announced plans to sell several million new shares to finance acquisitions and the construction of new factory in Russia. Publicly traded firm said in a statement published Tuesday morning it will seek shareholder approval to issue between 1 and 2.1 million new shares to owners of another Polish furniture maker, Furnel S.A.

Forte also says it would sell up to 3.4 million shares to pay for a new furniture factory in Russia. The plant, located close to wood panel factory owned by Pfleiderer Grajewo will generate annual sales of some 20 million euro, one of Forte's senior executives said yesterday.

Separately, Forte said it expects this year's earnings to nearly double to 12 million zloty ($3 million).

Investors reacted favorably to the announcement of new equity issue. Forte's shares on the Warsaw bourse rose 2.9 percent to close at 8.90 zloty. Forte's stock has as 52-week range of 3.43 to 10.65 zloty.

Equity markets

Śnieżka IPO fifteen times oversubscribed

Śnieżka, Poland's second largest paint maker announced it has sold all of its stock in the most oversubscribed offering this year. Dębica-based company raised approximately 46 million zloty minus underwriter fees, offering 2.1 million shares priced at 22 zloty each. Śnieżka wanted to sell just 100.000 shares to retail investors, but because of huge demand it ended up adding another 200.000 shares that were initially allocated to institutional investors. Despite the last minute change, retail investors received just six out of every 100 shares. Over three thousand retail investors signed up for Śnieżka IPO. Orders by institutional investors were reduced by 57.4 percent.

Trading in Śnieżka's rights is scheduled to start on December 29. Its shares will be listed as soon as the new equity increase is registered by the court.

Banking

BGŻ sees 20 percent earnings growth in 2004

Poland's largest agricultural bank BGŻ said on Tuesday it expects earnings to rise 20 percent next year. The bank estimates its profits in 2004 will reach 120 million zloty, despite amortization charges of new IT system, its CEO Jacek Bartkiewicz said.

State-controlled bank, whose full name is Bank Gospodarki Żywnościowej is shopping for an investment advisor that would help it find investors willing to buy new stock. BGŻ said it wants to raise between 344 and 668 million zloty. Much of the new issue will be directed at EBRD, World Bank's International Financial Corporation and various investment funds.