Polish Cabinet backs plan for Ciech stock market sale

28 December 2012 13:52  [Source: ICIS news]

LONDON (ICIS)--The Polish Cabinet has approved the transfer of the treasury ministry's controlling stake in soda ash producer Ciech to Poland's only state-owned bank, Bank Gospodarstwa Krajowego (BGK), and a special purposed investment vehicle, Poland's treasury minister said on Friday.

BGK and the investment vehicle will be tasked by the government with selling the stake in Ciech — as well as stakes in two other big Polish companies, energy company Polska Grupa Energetyczna and PKO Bank Polski — on the Warsaw Stock Exchange (WSE), said the treasury minister, Mikolaj Budzanowski.

The capital raised will be ploughed into financing energy and infrastructure projects to counter the decline in Polish economic growth, he added.

"The decision does not, however, mean that BGK and the investment vehicle will receive the shares and then sell them within days,” said Budzanowski, pointing out that the Ciech and other stakes would only be sold when market conditions were right.

The treasury ministry's stake in Ciech, Europe's second largest soda ash producer behind Belgium-based Solvay, only amounts to 38.7% but comes with voting rights that give the ministry control over the company.

By: Will Conroy
+44 20 8652 3214

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