Poland – Poland’s Ministry of Treasury and KGHM Ecoren have initialed a draft agreement for the sale of 85 percent of shares in Centrozłom Wrocław S.A. The contract will be concluded upon the approval of the shareholder, which is the Management Board of KGHM Polska Miedź SA. Ecoren has initialed the draft containing binding conditions for the conclusion of the transaction. It will acquire a majority stake in the privatized company – the remaining 15 percent will belong to the employees of Centrozłom.
The privatisation process began at the end of November 2009, when the Ministry of Treasury received six responses to its invitation to negotiations. Due diligence at Centrozłom Wrocław lasted until 22 January of the current year, after which talks were begun and the Ministry began to narrow the field of participants in negotiations. At the beginning of April, KGHM Ecoren was selected by the Ministry as the exclusive counterparty to negotiations – final determinations included perspectives for the company’s future development, planned investments, employment and the issue of the functioning of Centrozłom in the KGHM capital group.
‘Our goal was the acquisition of shares in Centrozłom so I am pleased by the initialing of the draft agreement, which brings us a step closer to realizing those plans’ says Mariusz Bober, Chairman of the Board of KGHM Ecoren.
The contract will be concluded upon the approval of the shareholder, which is the Management Board of KGHM Polish Copper KGHM Polska Miedź SA.
Centrozłom Wrocław is a company with a rich tradition reaching back almost 60 years. For the last two years it has belonged to the State Treasury. Its activities include scrap metal purchasing, distribution of steel products and recycling. It has 17 locations in 12 cities in south-west Poland, including Poznań, Wrocław and Gorzów Wielkopolski.
Would you like to share any interesting developments or article ideas with us? Don't hesitate to contact us.