Poland’s State Treasury may sell its 38.72 percent stake in chemical group Ciech this year in order to raise funds for infrastructure projects which are to be carried out within the Polish Investments program, Reuters reported, citing market sources. The stake in the chemical firm is valued at about zł.500 million.
The chemicals producer is worth some zł.1.46 billion
Earlier this year the government approved the transfer of stakes in Ciech, utility PGE, insurer PZU and lender PKO BP to Polskie Inwestycje Rozwojowe (PIR), one of the operators of the Polish Investments program. The holdings, together valued at zł.11 billion, are to be privatized with the proceeds earmarked for the infrastructure program.
The Ciech stake is likely to be sold next, sources say, since the Treasury is still awaiting a sizable dividend from PZU, and it already sold a part of its PKO holding earlier this year for zł.5 billion.
“Ciech is the most probable from the group,” a fund manager was quoted as saying. “The company underwent restructuring, improved results, and its share price is relatively high.” The company’s market value currently stands at zł.1.46 billion, the highest since 2008.
Currently there is no strategic investor that could be interested in purchasing the Ciech stake. Sources said the Treasury has decided to sell the chemicals producer through accelerated book building and that the sale would take place by the end of this year.
Poland plans to spend up to zł.500 billion by 2020 on infrastructure investments. They will be co-financed by PIR and by state lender BGK, the other operator of the Polish Investments program.
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