Poland mulls giving PGNiG stake in chemicals groups

Poland is considering raising its stake in gas distributor PGNiG PGNI.WA in exchange for stakes in state-controlled chemical companies Pulawy PULW.WA or Police PICE.WA, a deputy treasury minister said on Tuesday.

Poland currently has 85 percent of PGNiG but has said it will honour a previous government's commitment to give 13 percent to employees, which would take its stake below the 75 percent level necessary for certain strategic company decisions. "We are ready to raise PGNIG capital and rebuild our holding at the company above the 75 percent level," Deputy Treasury Minister Krzysztof Zuk said in a television interview.

"Higher synergies are visible in case of Police and Pulawy ... We are interested in extending the value chain and increasing margins."

The government controls 50.7 percent of Pulawy and 68.2 percent of Police, which are Poland's two largest fertiliser producers, both heavily dependent on natural gas delivered by PGNiG.

Zuk said the government was also considering other ways of increasing the state's stake in PGNiG, including swapping shares in another Polish power group.

By 0945 GMT, PGNiG shares had slipped 0.2 percent. They are down 17.7 percent this year, underperforming Warsaw's WIG20 index .WIG20, which has lost 15.6 percent. (Reporting by Patryk Wasilewski, editing by Will Waterman)
Source: reuters.com