Impexmetal sells its 71.1% stake in Huta Zawiercie

In a report issued yesterday to the Warsaw Stock Exchange, the Impexmetal group announced that it had sold its 71.1% stake in Huta Zawiercie steel mill, to Texas-based Commercial Metals, for zł. 200 million in cash. The deal would bring the seller a gross profit of zł. 107 million. Although the transaction is subject to the approval of various Polish regulatory ag encies, and to other conditions, it should be finalized within three months. Impexetal's liabilities in the form of credits amount to around zł. 160 million, while the group's total liabilities stand at zł. 600 million. Part of the capital raised on the sale would be used to pay off the debt. "We can spend zł 100 million for that purpose. Taking into account the fact that loss-making Huta Zawiercie, with its zł. 130 million in credits, will no longer be a member of the [Impexmetal] group, our liquidity will improve, while our costs will go down," stated Krzysztof Adamski, a member of I mpexetal's board of directors. (Parkiet, p. 3) J.K