|
|
PRIVATISATION
Polfa Tarchomin S.A.
Teaser
07.10.2009
Polfa Pabianice S.A.
Teaser
29.05.2009
Polfa Tarchomin S.A.
Teaser
29.05.2009
Polfa Warszawa S.A.
Teaser
29.05.2009
The Essence of Privatisation
11.05.2009
In the simplest terms, privatisation means the sale of a state-owned company. It is the State Treasury, as the most important and dominant owner, that decides whether, when and on what terms it wants to sell the property it owns.
The same applies to Polfas in Warszawa, Tarchomin and Pabianice. The State Treasury Minister has decided how to privatise these enterprises and assigned this task to Polski Holding Farmaceutyczny S.A., which represents the State Treasury, not itself, in the process. Therefore, also President of PHF S.A. Artur Woźniak, who was appointed in a competitive procedure, represents the State Treasury and interests thereof.
The above is worth remembering when asking questions about the essence of privatisation i.e. the criteria according to which we assess effects of this process. Now, the key measure in this respect is, of course, the price that can be obtained for the company’s shares.
Selling its enterprise for the highest price possible is not only the State Treasury right, it is also its duty. The Treasury’s representatives, PHF S.A. in this case, must therefore make all efforts to make this happen. This is why they have carefully selected the privatisation advisors in competitive procedures and are working together to define a strategy for finding investors and selling the company. This is why they play a supervisory role with respect to the Companies they are in charge of and decide about key issues related to them.
The measure of a successful privatisation is therefore the price paid by the winning bidder. It is very important also to employees holding nearly15% of shares in each of the Companies. Polski Holding Farmaceutyczny S.A. will strive to make the winning investor, to whom it will sell its shares, purchased the shares from the employees at the same price.
In this light, it is going to be an important matter to the employees. The higher the price PHF S.A. gets, the higher the price the personnel will receive for their shares. This will be a joint success, for in his respect the employees – shareholders of each Polfa, and the State Treasury, represented by PHF .S.A., are on the same side – they are the owners of the company. Therefore, they are allies and will remain as such until the end of the privatisation process and the sale transaction. This is why they should keep their fingers crossed for all actions PHF S.A. undertakes to increase the value of the company and, as a result, their shares. The better the financial standing of each Polfa, the higher the share price in the near future. In this matter, the matter of privatisation, the employees-shareholders should think and act as company owners. They should be interested in the highest possible valuation of the business and elimination of all obstacles on the way to the privatisation. The sooner it is completed, the employees can benefit from it by converting their shares into cash.
In addition to the sale price, another very important thing is the future of the Companies. What will they be like after the sale? Will they increase their production volumes and employment, will new technologies be introduced?
It all depends on the investor. This is why PHF S.A. is looking for investors in cooperation with advisors and experts who know the world’s pharmaceutical markets. The purpose is to attract the largest and most important investors. This is why PHF S.A. has decided to offer Polfa shares only to industry investors who are really interested in the potential and growth of these companies, not to financial investors or developers interested in acquiring the attractive land Polfas are located on and selling their property.
This said, the final assessment will be based on a set of key factors which, if achieved, will make the process successful.
Privatisation of subsidiary companies of Polish Pharmaceutic Holding continues
In September 2008 works started to privatise subsidiary companies of Polish Pharmaceutic Holding (PHF) i.e. Pabianickie Zakłady Farmaceutyczne POLFA S.A. (the Holding’s share of some 80%), Tarchomińske Zakłady Farmaceutyczne “Polfa” S.A. (the holding’s share of some 69%) and Warszawskie Zakłady Farmaceutyczne Polfa S.A. (the Holding’s share of some 80%). The gradually initiated tendering procedures, which attracted a number of bidders, have resulted in selecting legal and privatisation advisers to support the privatisation process of each of the subsidiaries. Appointed as advisors to Polish Pharmaceutic Holding have been – in Polfa Pabianice - F5 Konsulting Sp. z o.o. and law firm Prof. Marek Wierzbowski Radcowie Prawni Spółka Partnerska, in Polfa Tarchomin - Access Sp. z o.o. and law firm Tokarczuk, Jędrzejczyk i Wspólnicy Kancelaria Prawna GLN Spółka Komandytowa, in Polfa Warszawa - BRE Corporate Finance S.A. and law firm Weil, Gotshal & Manges – Paweł Rymarz Spółka Komandytowa. The advisers are to conduct pre-privatisation analyses and provide regular advisory services throughout the process.
The subsidiaries are now undergoing intensive examination, with the analysis process most advanced at Polfa Tarchomin, where the advisers have already completed some of the required reports and shall finish the remaining ones over the next several days. At the other companies (Polfa Pabianice S.A. and Polfa Warszawa S.A.), delivery of pre-privatisation analyses is expected at the turn of March and April 2009. While performing their work, the advisers will also hold information and consulting meetings with Labour Union Organisations active at the subsidiaries. Following a review by PHF, the reports developed by the advisers will constitute the starting point for defining privatisation strategy for each individual subsidiary (it is expected that the Companies will be sold to industry investors), which in turn will represent the end of the first (preparatory) phase of the privatisation process. It is estimated that the first share sale offer will be for Polfa Tarchomin and will be addressed to identified industry investors in March 2009. Offers for the other two Companies are most likely to be made in April and May 2009. Based on the interest expressed so far by potential investors, it may be said that the number of entities, both domestic and international, interested in participating in the privatisation of Polfas will be significant. However, their quality, in terms of the price offered and other negotiated conditions, can be assessed only after initial bids have been made.
An important fact is that the Companies being readied for privatisation hale been improving their financial performance. In this light, one cannot fail to notice the role of the Companies’ staff. Being the a key element in the Companies’ goodwill, their efforts hale contributed to the current financial results. The current employment at individual Companies stands at: in Polfa Pabianice – some 850 people, in Polfa Tarchomin – some 1,550 people, and in Polfa Warszawa – some 1,400 people. Most of the personnel are highly qualified and experienced employees.
Presented in the next section of this news release is brief financial information abort individual Companies as well as graphs showing 12 month trends (month-to-month) for net profits, net profit margins and sales revenues between November 2007 and November 2008.
Polfa Pabianice S.A.
2008 was another year of growing net result and profitability.
The Company’s financial data covering the period between January 2008 and November 2008 shows a decrease in sales revenues by PLN 2.4 million. Despite this minimal decrease, the operating result improved by PLN 1.8 million, or 7.9%, in the analysed period compared to the corresponding period of the previous year.
The financial data shows also an increase in net profit, which is expected to be higher than the overall 2008 target and than the figure posted the year before.
The Company’s net profit margin after 11 months of 2008 grew by 2 percentage points.
Polfa Tarchomin S.A.
Although the Company closed the year 2007 with a loss of PLN 32.5 million, it improved its financial standing significantly in 2008 as a result of restructuring and recovery actions. As part of closing down of unprofitable production lines, two rounds of the so-called Voluntary Programme were conducted, as a result of which some 300 employees left the Company.
Financial data covering the period between the beginning of January 2008 and the end of November 2008 shows a further reduction in the net loss which, according to forecasts, shall be minimal and single-digit at the end of 2008.
The Company managed to reduce the cost of products and materials sold as well as sales and general administration costs by PLN 54.2 million compared to the same period in 2007. The reduction of the operating costs contributed significantly to the increase in the Company’s operating profit which amounted to PLN 7.3 million after 11 months in 2008.. In the corresponding period in 2007, the Company posted operating loss of PLN 22.7 million.
Between January 2008 and November 2008, the Company reported a 12.9% increase in its domestic sales revenues over the corresponding period in 2007. A noticeable decrease in the Company’s international sales resulted chiefly from discontinuation of the loss-making production of active substances and enzymes.
The Company’s results indicate that the significant improvement in its performance was not a one-time phenomenon, and that the consistently implemented recovery programme made a positive impact in the area of sales revenues and net profit.
Polfa Warszawa S.A.
Compared with 2007, the year 2008 was characterised by a significant improvement in the Company’s financial standing.
Between January 2008 and November 2008, the Company reported a 14.4% growth in sales revenues to PLN 290.5 million over the corresponding period in 2007.
The financial data for the period between the beginning of January 2008 and the end of November 2008, shows also a growth in the net profit, which at the end of 2008 is expected to be more than “x-times” higher than in the previous year.
The Company’s net profit margin after 11 months of 2008 grew by 7.5 percentage points.
|
|
