12/14/2007

Poland's PGNiG will give shares to workers, but timing unclear - deputy minister

WARSAW (Thomson Financial) - Poland's government will keep its promise to hand 12.7 pct of shares in the state-owned gas distributor PGNiG to workers but the timing and structure of the deal has not been decided yet, a deputy treasury minister was reported today as saying.

Krzysztof Zuk told Parkiet newspaper in an interview that the new cabinet would give shares to workers as promised ahead of elections in October, but the ministry wants the company to pick new management first.

The plans have weighed on shares in PGNiG since treasury minister Aleksander Grad said last month that the deal could take place in the first half of next year. PGNiG floated 15 pct of its stock in Warsaw two years ago.

'The workers will receive 750 mln shares or a 12.71 pct of the already issued,' said Zuk, who is in charge of the energy and gas sector at the ministry. 'We want the new management to come up with the plan to hand over shares.'

He said PGNiG should carry out its plans to build a liquefied natural gas (LNG) terminal on the Baltic coast and take part in the construction of a gas link with Denmark.

'I do not rule out some changes to these projects, especially when it comes to their financial dimension,' he added.

PGNiG has planned to invest at least 450 mln eur to build the LNG terminal by the end of 2011. It hopes the terminal will produce 2.5 bln cubic metres of LNG per year as part of Poland's strategy to limit its dependence on imports from Russia.

Source:By Piotr Skolimowski, forbes.com



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