A phased sale of PHS shares to LNM for zł. 6 billion?

Tomorrow the government is likely to examine LNM's offer to buy Polish Steel Mills (PHS). "It has been estimated at zł. 6 billion," Puls Biznesu has leant from sources close to the potential investor. The sum consists of acquiring PHS' liabilities towards the state and its shares in the company, which amounts to zł. 2 billion, increasing the capital of the concern between zł. 400-600 million, as well as covering the remaining liabilities which stand at over zł. 3 billion. However, the investor may not have to pay the whole sum straight away, as some of the creditors and the state have said they prefer to keep their shares and wait for the money. The Industrial Development Agency (ARP) will sell its receivables in PHS to LNM as late as in 2007. "The transaction will be lucrative for the Agency due to fiscal reasons," said ARP president Arkadiusz Krężel. (Puls Biznesu, pp. 1, 7) M.M.