KGHM waits to decide on Catholic TV
TV Niepokalanow in January will get another chance to try to persuade copper concern KGHM Polska Miedz's supervisory board to invest in its proposed Catholic television station, TV Familijna.
KGHM's supervisory board on Dec. 4 postponed making a decision on whether it would invest zl. 26 million ($6.19 million) to take an 11% stake and 8.9% of the voting rights in the TV station. While KGHM's management board had backed the project, the board wanted to bring in a third party to evaluate the viability of a Catholic television station.
"The board decided that it would be good to look for additional expertise, " Jerzy Zdrzalka, chairman of KGHM's supervisory board told the Business Journal last week. "It's a new market for us, so we need an independent view."
In that aim, KGHM is planning to hire a consulting company to look at the proposal. Accounting firm PricewaterhouseCoopers had already put together a positive evaluation of the project, but the supervisory board is still looking for some more opinions, Zdrzalka said.
If KGHM does decide to invest, it will likely encounter stiff opposition to the project from its trade unions. Ryszard Zbrzyzny, leader of copper industry trade unions and a Democratic Left Alliance (SLD) MP, said that KGHM should concentrate on its core business, particularly considering that falling copper prices have put pressure on the company.
"If that zl. 26 million is to be invested (in TV Familijna), we will find ways to block it," he said.
KGHM, however, does have investments in other sectors, such as its 19.48% stake in mobile phone company Polkomtel (Plus GSM).
KGHM is not the only Polish company looking at TV Familijna, which needs as much as $100 million to get off the ground. Other entities such as insurer Powszechny Zaklad Ubezpieczen (PZU), systems integrator Prokom and oil concern Polski Koncern Naftowy (PKN) are looking at investing in TV Familijna's parent company, TV Niepokalanow.
TV Niepokalanow, a broadcaster 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 as well as with digital TV broadcasters Cyfra+ and Wizja TV. The strategy followed a decision by Polish bishops to create Catholic media by 2000, and while commercial entities have been set up in radio, nothing yet exists in television. To do that, however, the group needs investment from the outside.
Having KGHM sign on to the project would make it easier for TV Niepokalanow to nail down additional investors, many of whom are now wavering. For example, Prokom is interested in the idea, but has not yet committed itself, said Maciej Wantke, an assistant to Prokom's president. PKN and PZU also have not yet made a final decision on TV Niepokalanow's proposal.
For its part, Prokom is still hashing out how much it would even be willing to invest. "We can't provide details on that. At the moment, talks are in progress," Wantke said.
