Polish budget draft: PLN 15 bn revenues from privatization in 2011

Privatization is expected to bring PLN 15 billion in 2011, as envisaged in the next year’s budget draft. Privatization revenues planned for 2010-2013 amount to approximately PLN 55 billion, of which PLN 30 billion is to be acquired between 2011 and 2013.

Net income from privatization expected to flow into budget in 2011 are planned for PLN 7.69 billion. The remaining funds (PLN 7.31 billon) will be earmarked for target funds like the Enterprise Restructuring Fund, Reprivatisation, Treasury, Science and Polish Technology and the Demographic Reserve Fund. Profits from dividends are expected to reach PLN 3.3 billion next year.

‘Efficient implementation of the privatization process is the only chance to maintain economic growth and to improve competitiveness of Polish economy. Privatization creates the basis for accelerating development and for the modernisation of enterprises thus the entire economy’, it is written in the next year’s budget draft. Similarly as in previous years, privatization of Treasury’s companies in 2011 is to be carried out through the Warsaw Stock Exchange and in the form of public auctions.

The majority of privatization income before 2013 is expected to come from the sale of insurer PZU and PKO BP bank. The Treasury plans also to sell shares in Bank Polskiej Spółdzielczości.

The planned privatization projects in electro-energy sector are to take into account the needs of companies connected with investments in nuclear energy. The privatization process of heat-power plants is to be continued. The Ministry plans further privatization of refiner Lotos.

In case of the chemical sector, the Treasury is running work concerning the new privatization strategy of the first chemical group: Ciech, Tarnów Nitric Plant and Kędzierzyn Nitric Plant. The Treasury also wants to privatize Rudniki Chemical Pant and Mining plant and Sulphur Processing Plant Siarkopol in Grzybów

Gov’t Eyes zl.7bn From Privatization in 2011

The government aims to net at least zl.7 billion from privatization in 2011and remains on track to boost this year’s budget by zl.25 billion, Treasury Minister Aleksander Grad said.

"At the current stage of work on next year's budget, the minimum for privatization receipts is zl.7 billion," Grad told the PAP news agency.
"Our final plan for privatization will be known in September during completion of work on the budget."

The government’s zl.25 billion target for this year remained realistic, Grad added.
"We already have zl.12 billion this year and if nothing bad happens on financial markets, nothing negative with Greece or other EU states, then the zl.25 billion is absolutely achievable," he said.

Poland Sees Privatization Receipts Planned for 2010 as Realistic

Poland considers its assumptions regarding privatization receipts in 2010 as realistic but warns of unexpected events on global markets, Treasury Minister Aleksander Grad told broadcaster TVN CNBC.

"We want to realize these inflows, that's our goal and it is realistic," Grad said. "But I always say that it does not always depend on the Treasury Ministry," he added, referring to turbulence on foreign markets.

Poland plans to book 25 billion zlotys from privatization in 2010, according to the state budget.

Poland Approves PZU Sale, Europe’s Biggest 2010 IPO

(Bloomberg) -- Poland’s financial regulator approved the prospectus for an initial public offering worth at least 5.5 billion zloty ($1.9 billion) by state-owned insurer PZU SA, which would be the biggest European IPO in 2010.

The government and Eureko BV will seek to sell as much as 30 percent of central Europe’s biggest insurer, the regulator said in an e-mailed statement today. The IPO documents will be published on April 16.

The offering is part of the government’s plan to raise a record $10 billion from the sale of state assets this year to help finance the widening budget deficit. Poland also wants to sell stakes in its biggest energy, chemical and phone companies as well as the Warsaw Stock Exchange.

The PZU sale plan comes as the Warsaw Stock Exchange extended its rally to a 19-month high yesterday, even after a plane crash on April 10 killed the country’s president, Lech Kaczynski, the central bank governor and dozens of officials. Tauron Polska Energia SA, a state-owned power group, yesterday filed an IPO prospectus, seeking to go public by June.

PZU owners planned to start meeting investors and set a price range for the deal this week, two people familiar with the terms said on April 6. The price is likely to be set around April 26, with trading in Warsaw starting the week of May 10, said the people, who declined to be identified because the terms are private.

One-Time Option

Poland and Eureko set the minimum value for the entire company at 25 billion zloty, or 289.5 zloty a share, in an October agreement that resolved an eight-year dispute over PZU’s ownership and opened the door to an IPO. The insurer’s two biggest owners earlier said they planned to sell a stake of at least 22 percent, valuing the holding at 5.5 billion zloty.

The price for one PZU share in over-the-counter trade now is about 360 zloty, said Marcin Juzon from a private-equity firm Secus Holding SA, which holds “several thousand” PZU shares in behalf of its clients. He expects PZU owners to set the price range from 300 zloty to 400 zloty a share.

The minimum valuation set by owners would make PZU the biggest IPO in Europe since Polish power group PGE SA last year, exceeding the 760 million-euro ($1.03 billion) March sale by Kabel Deutschland Holding AG.

Eureko has a one-time option to block the initial offering if it thinks the price is too low, according to the accord it reached with the government last year.

PZU największa prywatyzacja w Polsce

Wielkimi krokami zbliża się największa prywatyzacja w Polsce. Sprzedaż akcji PZU może przebić nawet giełdowe debiuty PGE czy słynną ofertę akcji banku PKO BP - pisze "Polska The Times".

Ministerstwo Skarbu zapowiedziało, że w połowie maja na giełdę, oprócz pakietu akcji Eureko, trafi także do 5 proc. akcji ubezpieczyciela należących do Skarbu Państwa. Do kupienia może być więc około 20 mln sztuk akcji PZU o łącznej wartości ok. 6 mld zł.

Prospekt emisyjny PZU trafił co prawda do Komisji Nadzoru Finansowego już 10 marca. Teraz jednak resort skarbu zamierza go skorygować o dodatkową pulę akcji. W czwartek wieczorem na stronie internetowej Ministerstwa Skarbu pojawił się komunikat, w którym resort podaje, że Eureko zadeklarowało, że podczas debiutu PZU sprzeda nie mniej niż 17 proc. akcji spółki, bezpośrednio lub za pomocą spółki celowej Kappa. Dodatkowo na rynek prawdopodobnie trafi do 5 proc. akcji należących do państwa.

Resort tłumaczy w komunikacie, że zwiększenie puli akcji, które mają zostać sprzedane, związane jest z dobrą koniunkturą na rynkach kapitałowych. Równocześnie ministerstwo zastrzega, że Skarb Państwa zamierza utrzymać strategiczną kontrolę nad spółką. Akcje spółki na potrzeby debiutu nie zostały jeszcze wycenione. Brokerzy szacują, że jedna akcja zostanie wyceniona na około 300 zł. Zdaniem Marka Zubera, eksperta Dexus Partners, PZU jest dobrą, dynamicznie rozwijającą się spółką, ale trzeba liczyć się z tym, że jej akcje trzeba będzie trzymać kilka lat.

Jedynymi, którzy mogą być pewni wygranej na akcjach PZU, są pracownicy spółki. Gdy Skarb Państwa w 1999 r. sprzedał Eureko akcje PZU, ponad 19 tys. pracowników spółki otrzymało prawo do darmowych 14,9 proc. akcji.

Poland's Privatization Receipts Exceed 5 Billion Zlotys After Bogdanka Sale

Poland's privatization revenues have exceeded 5 billion zlotys out of 25 billion zlotys budgeted for 2010, after the sale of coal miner Bogdanka shares on Tuesday, Treasury Ministry said on its website.