LNM Holding set to shell out zł. 3.9 billion for PHS

The Treasury Minister Piotr Czyżewski estimates that the financial inv olvement for the new investor of Polish Steel Mills (PHS), LNM Holdings may reach zł. 3.9 billion. At the same time LNM president Lakshmi Mittal said that the company intends to invest zł. 7.7 billion. Additionally, the new investor is said to be buying out PHS's liabilities owned by the Industrial Development Agency (ARP) and reputedly worth zł 370 million. Meanwhile, ARP president Arkadiusz Krężel earlier claimed the value of the liabilities to be bought out will oscillate between zł. 500 million and 550 million. Under the privatization program, LNM will first buy out the zł. 1.24 billion liabilities of PHS owed to the Treasury Ministry and then restructure the remaining zł. 3.4 billion. Subsequently, the new investor will increase PHS's capital by zł. 800 million. A zł. 300 million loan for PHS is also taken into consideration. (Puls Biznesu, Tue, Oct. 28 p. 9) A.Z.