The Ministry of the Treasury put up for sale 81.67 percent of Huta Labedy steel plant, which was founded in the 19th century. The price amounts to PLN 10 (EUR 3) per share. Offers should be submitted till August 1st. PKF Consult advises at the transaction.
According to “PB” sources, at least five investors eye the steel plant which will be privatized, including ArcelorMittal, Zlomrex and Silesia Capital Fund. ArcelorMittal Poland has similar activities as Huta Labeda. Zlomrex controlled by Przemyslaw Sztuczkowski has Elstal steel plant which cooperates closely with Huta Labedy. Silesia Capital Fund, which sold a plant to Sievierstal early this year, may look for an investment opportunity.
Joanna Schmid, deputy Minister of the Treasury, forecasts that the steel plant will be sold this year. The buyer will have to invest in Huta Labedy. According to Zenon Gorniak, the plant’s CEO, an investor from the steel sector would be the best solution. Huta Labedy needs funds for a new flat steel plant.
“We plan to invest PLN 60m within four years”, the CEO said.
Huta Labedy has 40 percent in the market of products used by the mining sector, the rest belongs to ArcelorMittal. In 2007, the steel plant had PLN 390m of sales and PLN 41m of net income.
(PLN 1 = EUR 0.3)