KGHM plans to offload Dialog

Largest copper miner KGHM announced its plans to sell its telecoms unit Dialog and allocate around zł.500 million for its own power generating capacity, its chief executive Mirosław Krutin said on Tuesday.

The company plans to float Dialog, which is expected to bring in a net loss this year to KGHM, on the bourse first and then unload the remaining stake afterwards.

"Our strategy for Dialog is for the unit to go public within 12 months," CEO Mirosław Krutin told TVN CNBC in an interview. "Then in two, three years we will exit the business." Krutin declined to comment how much the company plans to earn from the sale.

Meawhile, KGHM wants to retain its stakes in Polkomtel, which is Poland's second largest mobile operator. According to Krutin, the decision to retain its assets is due to keeping a diversified business.

Krutin, also said that KGHM is looking at investments in the power sector. Currently, the company is in talks with gas monopoly PGNiG to build two gas-powered generators.

Source: Reuters