PGG, KHW merger will be finalized soon – PGG president

On Wednesday, Polish Mining Group (PGG) president, Tomasz Rogala, confirmed that an action plan to merge his company with Katowice Coal Holdings (KHW) has already been prepared. “We started preparing due diligence, examining all aspects related to the merger – technological, commercial, the whole area of ​​staff, the financial aspect…” Rogala told the Polish press. He indicated that the merger would likely be finalized within the first quarter of 2017, although it will await the necessary approval of the supervisory board and the shareholder’s assembly. According to the Ministry of Energy, one of the most important challenges in executing a successful merger will be an agreement with banks on the terms and conditions of repayment of KHW bonds worth PLN 1 billion, and the repayment of KHW's liabilities to counterparties.