Spokesman of PGNiG officially confirmed yesterday that they are analyzing buying Kompania Weglowa's 36.7% stake in chemicals company Ciech.
Our view: We have expressed our negative view on the transaction yesterday, seeing the news as a risk factor for minority owners. Although we cannot rule out some synergies between PGNiG and Ciech’s fertilizer maker subsidiary Police, this cannot justify a sizeable investment in a completely different sector. In our view, government puts pressure on PGNiG regarding this acquisition, which could further boost investors’ fears on the return. We maintain our view that profit taking might continue on the back of this news.