Embattled steel mill boosted through Pekao share transfer

The government on Tuesday agreed to transfer 1.08 million shares, valued at zl.75 million, in the country's largest listed Pekao Bank S.A. to Huta Stalowa Wola S.A. in a bid to raise the embattled state-owned steel mill's capital. Stalowa will thus acquire 0.65% stake in Pekao, in which the state currently holds 8%. The government is counting on the raise in Stalowa's capital to help rekindle the struggling mill's restructuring process, with the ultimate objective of selling the mill off to a future investor. (Reuters, Prawo i Gospodarka, p.2) M.S.C.