6 February 2010 --- Rzeczpospolita --- Bogdanka: New Issue, if the Treasury Agrees
Lubelski Węgiel Bogdanka, the only Polish mine on the stock exchange, considers an issue of new shares. However, it makes it contingent on a decision regarding the sale of a subsequent pool of securities by the Ministry of Treasury.
“Each company, upon entering the stock exchange, opens a gateway to a potential issue of new shares. A number of companies have used the option many times, gaining capital for further or faster development. Bogdanka is a company whose strategy includes dynamic growth, increasing share in the market by doubling coal production by 2014”, tells the Rzeczpospolita daily Mirosław Taras, President of the Bogdanka’s Management Board, justifying the need for a new issue.
The question is, however, what it would look like. The State Treasury is a majority shareholder of the company (approximately 60%) and it plans to sell Bogdanka’s shares this year – not excluding the controlling block.
”We are considering the issue of new shares and gaining capital in such way in order to, for example, increase the extraction area. But this depends on two factors. Firstly, on the future situation on the stock exchange. And secondly, on the block of shares that the Ministry of State Treasury will want to sell”, explains Taras. “When taking a decision in that respect, we would have to consult it with our shareholders, correlate it with the plans of the Ministry of Treasury, and assess market absorbency for conducting such an operation”, he adds.
The representatives of Bogdanka claim that as of today it is impossible to say how big the new issue could be. They also speak enigmatically about its potential investment objectives. One can however presume that the company that produces coal for the purposes of the power sector thinks about extraction of subsequent deposits of the Lubelskie Zagłębie Węglowe.
Means acquired so far from the IPO (PLN 528 million) have been allocated for the new Stefanów field, thanks to which Bogdanka will double annual coal extraction in 2014 to reach 11 million tonnes.
The Ministry of Treasury does not know anything about Bogdanka's new issue plans yet. “The company has not submitted any concrete information regarding subsequent issue so far. In this situation, it is difficult to comment on the issue of mutual relations between the share issue by the company and the plans of the Ministry of State Treasury regarding sale of the remaining block of shares of the State Treasury”, told us Maciej Wewiór, Spokesman of the Ministry of State Treasury.
kbac 6 February 2010, Rzeczpospolita
The question is, however, what it would look like. The State Treasury is a majority shareholder of the company (approximately 60%) and it plans to sell Bogdanka’s shares this year – not excluding the controlling block.
”We are considering the issue of new shares and gaining capital in such way in order to, for example, increase the extraction area. But this depends on two factors. Firstly, on the future situation on the stock exchange. And secondly, on the block of shares that the Ministry of State Treasury will want to sell”, explains Taras. “When taking a decision in that respect, we would have to consult it with our shareholders, correlate it with the plans of the Ministry of Treasury, and assess market absorbency for conducting such an operation”, he adds.
The representatives of Bogdanka claim that as of today it is impossible to say how big the new issue could be. They also speak enigmatically about its potential investment objectives. One can however presume that the company that produces coal for the purposes of the power sector thinks about extraction of subsequent deposits of the Lubelskie Zagłębie Węglowe.
Means acquired so far from the IPO (PLN 528 million) have been allocated for the new Stefanów field, thanks to which Bogdanka will double annual coal extraction in 2014 to reach 11 million tonnes.
The Ministry of Treasury does not know anything about Bogdanka's new issue plans yet. “The company has not submitted any concrete information regarding subsequent issue so far. In this situation, it is difficult to comment on the issue of mutual relations between the share issue by the company and the plans of the Ministry of State Treasury regarding sale of the remaining block of shares of the State Treasury”, told us Maciej Wewiór, Spokesman of the Ministry of State Treasury.
kbac 6 February 2010, Rzeczpospolita