PKN Orlen plans to sell telecoms stake to relieve pressure

17 June 2009 11:10  [Source: ICIS news]

PRAGUE (ICIS news)--PKN Orlen hopes to relieve some of its financial pressures by raising at least zloty (Zl) 3.8bn ($1.2bn/€0.8bn) from selling a telecoms company stake by the end of this year, the Polish oil and chemicals group said on Wednesday.

Orlen is under pressure to sell assets such as the 24.4% stake in Polish mobile operator Polkomtel, as well as polyvinyl chloride (PVC) and nitrogen subsidiary Anwil, so that it can avoid the possibility of breaching bank covenants on major loans for the second time this year, analysts have noted.

Investment bank Wood & Company said state-controlled Orlen might successfully sell the stake within this year at its hoped-for price to another state-controlled company, copper and silver producer KGHM.

KGHM, which already has a 24.4% stake in Polkomtel, could raise debt with the blessing of the treasury ministry to enable the transaction, the bank added.

($1 = Zl3.25, €1 = Zl4.51)

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By: Will Conroy
+44 20 8652 3214

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