Polish Power Grid (PSE) reveals restructuring plans

Polish Power Grid (PSE) has prepared a plan for restructuring the group. Later this year, PSE Electra will take over energy trading on long term contracts while NOM and Tel-Energo will move more into telecommunications with a view to competing against TPSA. PSE's Elektrownie Szczytowo-Pompowe power plant will generate energy and PSE Operator will be responsible for power transmission. No earlier than the second half of 2003 a new company, yet to be created and controlled by PSE, will issue long-term bonds worth zl. 7 billion that would allow PSE to pay off its debts. Soon, PSE will choose a bank to help it with the bond issue. About 20% of company securities could be purchased by pension funds. The majority of bonds will be offered for sale on European and American markets. PSE's long-term contracts are worth a total of almost zl. 13 billion, but most of these will be taken over by a new company called BOT, centered around the Belchatow, Opole and Tarnow power stations. (Puls Biznesu, pp. 1, 11) A.D.