Privatization of PHF to begin in 2006

"In the first phase we will direct our offer at financial investors. If the need arises to increase the company's share capital we will carry out a new share issue. The state will retain no less than a 70% stake in PHF," said Socha. The following phases of privatization envisage selling shares to different groups of investors, but an advisor would decide upon the final details of the project. "Privatization of the whole holding will be more beneficial than selling Polfas separately, but it is too early to assess their value," believes the minister. Initially, the holding will have a structure of a financial group, while Polfas will retain their legal identities. "At the moment the holding is privatized it should have a clear and efficient operating structure," stressed Socha. (Puls Biznesu, pp. 1, 11) M.M.