Privatization strategy for PGNiG draws a step closer

The cabinet will decide today about how to privatize and restructure Polish Oil and Gas (PGNiG). The proposal ministers are to consider would mean converting the company into a capital group, which would engage in transporting, storing and wholesale trade of gas and oil. Six distribution companies would emerge from PGNiG. Other new enterprises will be formed in the group to strengthen operations in underdeveloped areas. An exploration and mining unit would probably be the most profitable part of the group. Once the scheme is approved, restructuring will be in two stages. PGNiG will sell shares in particular companies to sector or financial investors, and later issue shares for the group as a whole. The concrete final details will be decided upon later in the year. The strategy approved by the company in June declared that the capital would be increased by a public offer to take place at the end of 2003 or in early 2004. (Rzeczpospolita, p. B1) M.T.