Outline of main terms to acquire Polish Steel Mills at zl. 3 billion clearly set

The Economy Ministry hopes to have an investor for Polish Steel Mills (PHS) next year. But the acquisition, at zl. 3 billion, is not going cheap. Although the market value of the mills has been placed at zl. 7 billion, from this figure one must remember to deduct liabilities of zl. 3 billion from the book value. Those in the lead to take over PHS include, Arcelor, British-Dutch LNM Holdings US-steel as well as ThyssenKrupp of Germany. "A new investor will have to fulfil three conditions. First, he will have to assumes PHS's liabilities and to transform them into shares, second, the investor will have to increase PHS's share capital by $120 million to $150 million," said Deputy Economy Minister Andrzej Szarawarski. To fulfill the third condition, the investor will have to buy PHS's shares, which are currently valued at zl. 900 million. (Puls Biznesu, p. 6) A.Z.