Poland resumed plans to sell Grupa PHN SA, a Warsaw-based property group, in an initial public offering as part of its asset-sale program aimed at helping finance the budget deficit.
The government will offer as much as 25 percent of PHN in an IPO in the first quarter before selling a “significant” stake to a strategic investor, the company said in an e-mailed statement today. PHN’s properties are mainly in Warsaw and its biggest clients are state-owned Bank Ochrony Srodowiska SA and the Polish Post.
The sale of PHN, whose assets were valued at 2.34 billion zloty ($759 million) in September, will be among the biggest state offerings this year. Poland plans to sell at least 5 billion zloty of assets in 2013, which may also include stakes in utility Energa SA, PKO Bank Polski SA and insurer PZU SA.
“Investors will probably seek to buy PHN shares at a significant discount as the company has lots of low-quality assets while carrying out its development project will take a lot of time,” Jaroslaw Lis, who helps manage the equivalent of $900 million at BPH TFI SA in Warsaw, said by phone today.
Warsaw’s WIG Developers Industry Index (WIGDEV) rebounded 9.6 percent last year after a 51 percent slump in 2011, while the benchmark WIG20 Index advanced 20 percent last year.
PHN had a net loss of 142.9 million zloty in the first first nine months of 2012, “driven mainly by loss from the change in the fair value of investment property,” the company said today. Revenue stood at 141.1 million zloty in the period.
Citigroup Inc., UBS AG, Societe Generale SA and Deutsche Bank AG will help manage the IPO as joint global coordinators and joint bookrunners. BRE Bank SA, Bank Zachodni WBK SA, Wood & Co. and PKO Bank are joint bookrunners.
Grupa Radius, the real-estate developer controlled by Polish investor Robert Szustkowski, is seeking to gain control over PHN, it said last week. Mennica Polska SA, a Polish coin maker, is also interested in the sale, PAP reported on Jan. 11, citing Chief Executive Officer Grzegorz Zambrzycki.
Poland’s Treasury Ministry sold 9.2 billion zloty of assets in 2012, according to data on its website. The budget deficit is planned at 35.6 billion zloty this year, compared with 31 billion zloty in 2012.
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