CORRECT: Poland Short-Lists 4 In Bourse Privatization
22 Luglio 2009 - 3:41PM
Dow Jones News
Poland's Treasury has short-listed four exchanges, Deutsche
Boerse (DB1.XE), London Stock Exchange Group PLC (LSE.LN), Nasdaq
OMX Group Inc. (NDAQ) and NYSE Euronext (NYX), to conduct due
diligence on the Warsaw Stock Exchange, the ministry said
Wednesday.
Poland's government plans to sell a majority stake in the Warsaw
Stock Exchange, or Gielda Papierow Wartosciowych w Warszawie SA, by
the end of 2009, as part of its ambitious privatization plan, which
aims to raise 12 billion zlotys ($4 billion) this year.
The Polish government - keen to keep the ballooning of the
budget deficit to a minimum in 2009 and 2010 - prefers to sell off
state-owned companies, even if valuations are lower than in the
pre-global credit crisis environment.
The exchange industry has experienced a wave of consolidation in
recent years, including NYSE's acquisition of Euronext and Nasdaq's
acquisition of OMX, though deals have taken a pause during the
economic downturn.
The Treasury wants to sell a stake of 51% to 73.82% in the
exchange, which itself has played a key role since 1989 in the
privatization of communist-era state-owned companies during
Poland's transition to capitalism.
A spokesman for the London Stock Exchange Group PLC (LSE.LN)
said: "We always look for opportunities, and we're engaged in the
Warsaw Stock Exchange's process." The other short-listed exchanges
weren't immediately reachable for comment.
Members of the Warsaw Stock Exchange will also be invited to
make offers for stakes of 0.5% to 10% in the exchange, from a
22.82%-plus-one-share stake earmarked for them, the Treasury
said.
There are 375 companies listed on the Warsaw Stock Exchange,
which have a total market capitalization of PLN570.73 billion. The
exchange booked about PLN90 million to PLN95 million net profit in
2008, according to the daily Parkiet.
Using a price-to-earnings ratio of 20, the multiple used during
the sale of Prague Bourse, WSE is worth around PLN3 billion, Deputy
Treasury Minister Joanna Schmid said early this year.
At the current lower P/E of 7, the value would be below PLN1
billion, according to calculations in an article in the April issue
of Forbes' Polish-language edition.
In addition to price, the Treasury will likely use other
criteria when deciding on the buyer.
"The investor must ensure the development of the capital market
in Poland and strengthen the WSE's position in the region," Schmid
said.
Treasury Ministry Web site: www.msp.gov.pl
WSE Web site: www.gpw.pl
-By Marynia Kruk, Dow Jones Newswires; +48 22 447-2431;
marynia.kruk@dowjones.com
(Vladimir Guevarra in London contributed to this report.)