State to appeal ZE PAK ruling

The State Treasury has not made a final decision on last week's court ruling concerning power plant ZE PAK, but an appeal seems inevitable.

The lawsuit against the State was submitted by Elektrim, a major shareholder in the power plant, with the court recently deciding that the State is to conclude the sale of its remaining shares in the plant to the firm.

"We do not agree with the decision of the court and it is very likely we shall appeal against it. We maintain our opinion that in the current financial condition, Elektrim is unable to purchase ZE PAK from us. In this situation, how could we possibly ask the government to accept such a transaction?" said Deputy Treasury Minister Jan Bury.

In theory, the Cabinet could oppose selling more shares to Elektrim, but in that case it would have to carry out an IPO of ZE PAK. It is likely that only a high price of shares could discourage Elektrim from purchasing the power plant.

The state hopes for a conciliatory resolution of the dispute, since "Enea [which was indicated by the previous government to take over lignite mines from ZE PAK] made a specific offer to the supervisor of Elektrim and in our opinion it was a good offer." said Deputy Minister Bury.

Source: Puls Biznesu