SPiN (Prokom 50.4%) has sold its entire 100% stake in subsidiary WiedzaNet for PLN 5.05m. The company will realize a PLN 2.65m pre-tax gain on this transaction booked in 4Q06 results. WiedzNet was regarded as a non-core asset and according to SPiN’s CEO quoted in today’s Parkiet we could expect more of such transactions soon. In 1Q07 the company expects to sell 25% stake in Steren consolidated via equity method.
Our view: In our opinion, the news should have a positive trading impact as it gives hopes for better reported earnings in 4Q06. The transaction was expected and is a part of the process of streamlining capital group before the merger with ABG Ster-Projekt. WiedzaNet 2005 revenues of PLN 6.3m are expected to grow only marginally in 2006 to PLN 6.6m and stay flat in 2007.