Energis calling on potential investors

Energis Polska, the local telecom company partly owned by financially troubled U.K. alternative provider Energis, has enough cash to continue operating for another year as it searches for an investor, the company's president said last week. "If worse comes to worse for the time being we can run the business on our own (but) definitely we will look at other options at how we can survive on the market," said Jarosław Mikos, Energis Polska's former chief financial officer who was appointed president last month. "If the business is properly managed and any kind of extraordinary events don't happen, we should be able to run the business for the next 12 months easily." He declined to say how much cash the firm has.

In the meantime, Mikos said that finding an investor was "the main drive for the business at the moment" and that Energis Polska is in the early stages of discussions with 12 prospective financial investors and strategic partners. Despite dismal investor sentiment for telecoms worldwide, Mikos said he was confident the firm would be able to attract an investor since there was a clear niche for the firm's voice and data transmission services for large corporate clients operating in Poland. He said he expected to have an investor or strategic partner within the next three to nine months, and added that capital injections would be the best way to continue funding the firm's development. The Polish operations embarked on its search for an investor following U.K.-based Energis' announcement in February that it would pull out of its costly overseas investments in continental Europe, where it operates telecom firms in Poland, the Netherlands, Germany, Switzerland, France and Italy. After succumbing to heavy debt and ailing financial health, the distressed Energis is now holding debt-restructuring talks. Unlike the parent company's other operations in Europe, Energis Polska, however, is run as a joint venture by Energis and the U.K-based electrical power group National Grid, both of which own a 48.75% stake of the Polish firm. Polish State Railways (PKP) owns a 2.5% stake.

Despite news reports, Energis Polska had not yet secured financing from its two main shareholders, but was discussing financing options with them, Mikos said. Last Tuesday, National Grid issued a statement that it was "evaluating with its partners the options for Energis Polska."