KGHM to decide on Catholic TV
KGHM Polska Miedz's supervisory board was debating late Friday on whether the copper concern would expand its media holdings by becoming an investor in a proposed Catholic television station called TV Familijna.
KGHM is deciding whether it will invest zl. 26 million ($6.19 million) for an 11% stake and 8.9% of the voting rights in the proposed broadcaster.
If the company's supervisory board approves the move, KGHM will join a host of Polish and foreign companies investing in TV Niepokalanow, a company that will own the new station.
TV Niepokalanow, a television station owned by the Franciscan order, received a license in 1994 to broadcast on a supraregional basis. The station has expanded its reach nationwide through agreements with several cable companies. The strategy followed a decision by Polish bishops to create Catholic media by 2000, and while commercial entities have already been set up in radio, as of yet nothing exists in television.
TV Niepokalanow, however, has no funds to develop programming and therefore has approached companies such as Powszechny Zaklad Ubezpieczen (PZU), Prokom and Polski Koncern Naftowy (PKN) for money. The group is expected to need as much as $100 million in capital.
While the group clearly has a religious focus, Polish companies who have looked at the venture said they thought it was a viable commercial venture. "Estimates of the venture's potential profitability exceeded our rather steep standards," KGHM spokesman Jerzy Pietraszek said.
KGHM's consideration of the investment is in line with the firm's strategy of increasing its telecom and media holdings. KGHM already has a 19.48% share in mobile phone company Polkomtel (Plus GSM). PKN, one of the other Polish companies interested in TV Familijna, also has a 19.48% stake in Plus GSM. PKN has already signed onto the TV Familijna venture.
"PKN expressed its will to participate in the undertaking," said Ireneusz Wypych, spokesperson for PKN. "The supervisory board accepted those plans some time ago."
He refused to say, however, how much PKN plans to invest.
