Poland Sells Shares in PKO

The share in the banking group decreases to 31.9%. Further privatizations are planned.

Poland´s government expects to generate revenues from privatizations of more than € 1.2bn this year. The first privatization step will affect the banking group PKO. After the transaction, the publicly owned interest in PKO and PZU will come at 25%. In total, 11.75% of PKO´s shares will be sold in the next weeks. At the moment, the Polish Treasury Ministry holds a 33.4% stake in PKO. Moreover, the state-owned bank BGK owns 10.25% of PKO´s shares. After the transaction the publicly held stake comes at 31.9%. In the end, the state-owned stake will be cut down to 25%.

In the next months, some other bigger privatization steps are planned. At the moment, the publicly held stake in the energy company PGE comes at 61.4%. After the privatization, 50% of PGE´s shares will remain under public control. Moreover, the stake in the insurance company PZU will be sold. The publicly held stake in PZU reaches 35.1%. In total, 160 firms will be sold in the next years. “Then, we will have completed the privatization process which was started twenty years ago.” Treasury Minister Budzanowski says.

The revenues will be used to support Polish businesses. The lending conditions at the state-owned bank BGK will be eased. Moreover, a part of the revenues will be invested in the public investment company CIS. The investment company will provide assistance for future major projects. BGK and CIS will become the new growth engines for Poland´s economy, the government said.