BGŻ moving ahead with zł. 500 million share issue

Following several attempts, the shareholders of Bank Gospodarki Żywnościowej (BGŻ) yesterday agreed to a capital injection into the company, through an issue of between 8.6-10.6 million new shares, which the bank hopes will raise about zł. 500 million. The current shareholders do not hold a buy option. "The board will set the share price between zł. 43-63, while the management will seek buyers among domestic and foreign financial institutions, as well as private individuals. One institution interested in our issue is the European Bank for Reconstruction and Development (EBRD). We will also turn to investment and pension funds," said BGŻ president Jacek Bartkiewicz, adding that before the issue he plans to convince the shareholders to change the privileged status of the shares owned by the State Treasury, a move which would significantly increase the demand for the shares. (Puls Biznesu, p. 6; Parkiet, p. 1) A.K.