PGNiG's privatization to go ahead despite latest setback

Despite that it was one of the conditions to ensure the successful floatation of the firm, the management assured that the company will nevertheless enter the bourse in June. "After two months of difficult talks, we managed to negotiate a leasing agreement with PGNiG concerning parts of the gas pipelines," said Andrzej Osiadacz, president of PGNiG Przesył. The contract will have appendices stating what share of the pipelines and in what legal form they will be taken over by the PGNiG subsidiary. However, Przesył's assets valuation has not been concluded and it is not yet known what will be the value of the stake to be owned by the state. The minimum value of the firm is estimated at zł.48 million. Until the process of assessing the value of Przesył is concluded, PGNiG cannot commence negotiations with bondholders and creditors. (Puls Biznesu, pp. 1, 5) M.M.