Polish companies JSW and Weglokoks may look at buying NWR coke unit - slightly positive

Polish companies JSW (66,82 PLN, -0,88%) and Weglokoks may look at buying NWR (18,8 CZK, -13,56%) coke unit, polish press Parkiert says. /Based on the few recent comparison, a valuation range for the coking business (OKK) may be 70-175 mln. EUR. The lower range is based on earnings potential as it is 5-6x EBITDA of OKK on normalized basis. The upper range is based on EUR/tonne of annual capacity with respect to JSW purchase of two coking facilities from the Polish state Treasury in 2011. We expect the offer price to be close to the lower range (70 mln. EUR) which may correspond to NWR’s „cash-deficit“ in 1 or. max. 2 quarters in the current coal price environment. Nevertheless, the interest may be slightly POSITIVE for shares after yesterday’s 13.6% slump.