Privatisation Procedures

Privatisation procedures are determined within the meaning of the Commercialisation and Privatisation Act of 30 August 1996 (Journal of Laws of 2002, No. 171, item 1397, as amended, hereinafter referred to as the “Act”). Particular procedures are selected by the Minister of Treasury, taking into consideration the degree of complexity of the envisaged transaction, as well as the size and financial standing of the entity.

1. PUBLICLY ANNOUNCED OFFER

   Enables the conclusion of the share transfer agreement without the need to conduct prolonged negotiations.

2. PUBLIC TENDER

   Consists of a public invitation to potential buyers to submit bids for the purchase of Treasury shares. After the bid submission deadline expires, a committee appointed by the Minister of Treasury, in an open procedure, opens all the bids submitted by potential buyers and evaluates their consistency with the invitation. Subsequently, in a closed procedure, it evaluates the merits of the submitted bids and either selects the most advantageous bid or withdraws from the tender without making a selection.

3. NEGOTIATIONS ON THE BASIS OF PUBLIC INVITATION

   This path is generally applied in privatisation of medium-sized and large companies, in which controlling stakes are sold to strategic investors. The requirement for the procedure to be “public” only concerns the fact of the public invitation to negotiations announced by the Minister of Treasury. Entities admitted to negotiations gain the right to examine the documents of the company and of its enterprise.

4. ACCEPTANCE OF AN OFFER IN RESPONSE TO A CALL

   The Minister of Treasury may sell shares of public companies on the basis of a call, a procedure that applies exclusively to companies listed on the stock exchange.

5. PUBLICLY ANNOUNCED AUCTION

   Announcements of the Minister of Treasury are published in a daily newspaper of nationwide circulation. The auction may be conducted if the starting price is not lower than the book value of shares.

6. SALE OF SHARES ON THE REGULATED MARKET

   Privatisation takes place in a manner of the sale of shares admitted for sale on the regulated market, where individual and institutional investors can buy and sell securities.

   For comprehensive information on indirect and direct privatisation procedures, please click here.