Poland to sell more of copper miner KGHM

10 November 2009 | 05:11 Code : 19440 Geoscience events
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Poland’s government will go through with a further sell-off of copper miner KGHM...

Poland’s government will go through with a further sell-off of copper miner KGHM (KGHM.WA: Quote), with the plan being to sell a 10 percent stake to help the ailing state budget, Prime Minister’s aide was quoted as saying.The Treasury in June announced a controversial plan to sell between 10 and 42 percent of KGHM, sending the stock price down and causing numerous government officials, including Prime Minister Donald Tusk, to object to the move."We have agreement as to the issue that KGHM will not disappear from the list of the companies to be privatised," Michal Boni, who leads a team of ministers working on the list, told Gazeta Wyborcza daily.Unnamed government sources told Wyborcza the move to sell 10 percent of KGHM would be only a first step on a road to complete privatisation of the company.The miner, in which the state controls 42 percent, is valued at 17.2 billion zlotys ($6 billion), making the 10 percent stake worth over 1.7 billion zlotys.Sale of Europe’s second largest copper miner stake was one of main elements of the ambitious sell-off plan that would bring 36.7 billion zlotys into the state coffers, but went against Tusk’s promises made during the last election. (Reporting by Adrian Krajewski; Editing by David Holmes)


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