The Polish Treasury Ministry is considering boosting the share capital of natural gas monopoly Polskie Gornictwo Naftowe i Gazownictwo, PGNiG, (PGN.WA) to enable it to transfer up to 15% of company shares to its employees, while keeping no less than a 75% stake.
Deputy Treasury Minister Krzysztof Zuk told TVN CNBC television channel that in order to keep the government's stake in PGNiG at no less than 75% the Treasury is considering boosting its share capital.
"One of the options are capital ties with state-owned chemical producers and power generators. This would allow for business synergies," Zuk said. In other words, an option would be to invest some of the government-owned assets in PGNiG in return for shares.
The government currently holds 84.8% stake in PGNiG following the initial public offering in 2005. Under Polish law, the company's employees are entitled to receive freely up to 15% of PGNiG shares. Without a capital increase, this operation would lower the government holding to 70%.
State-owned fertilizer makers Pulawy (ZAP.WA) and Police (PCE.WA) are Poland's largest natural gas consumers, while rising prices of coal, the main fuel in Polish electricity generation, are making investments in gas-fired power plants more attractive.