Next year KGHM needs at least PLN370m for on going investments and MD Stanisław Siewierski considers that the sum ought to be PLN600m. Where this money is to come from is the great unknown as the financial condition of the company is not the best.
One answer could be in the sale of some of its subsidiaries which are not involved in the core business of KGHM. Examples of companies that could be on the auction block are PTR and TUW Cuprum from the insurance sector, tourist company Interferie or TV channel Telewizja Familijna. In total KGHM has more than thirty companies in its portfolio. Unfortunately some of this companies are also in a bad way. Interferie, for example, was profitable until 1998, now it is losing money.
The best investment that KGHM has so far made is its 19.6 percent stake in cellular telephone operator Polkomtel which will not be sold for the moment. KGHM would even like to increase its stake, the last board said that it wanted a third of the company.© ℗
Podpis: Alan Heath