Monday, March 21, 2011

Second Largest European Rail Freight Cargo Carrier Up For Sale

PKP Cargo Finally Invite Bids for Control of Polish Rail Provider
Shipping News Feature

POLAND – Details of the expected sale of Polish road freight carrier PKP Cargo SA have been released by Polish State Railways today. The successful bidder will be able to purchase 50 per cent plus one share in the cargo carrier. Potential investors, having complied with the formal requirements contained in the notice, will be able to download an information memorandum containing basic information on the legal, economic and financial position with 12th May 2011 set as the time limit for submission of initial offers to acquire shares.

Companies authorized by PKP SA to proceed to the next stage of the purchase process and included in a short list approved by them will be able to perform a due diligence examination of the company's position in terms of its business, financial and legal situation that will serve to build a binding tender offer to purchase stock.

The announcement comes after a lengthy initial period preparing the company for sale. PKP Cargo SA is the leader in the Polish rail freight market with a 55.4 per cent interest. It is the second largest freight carrier within the European Union and provides cargo services on both domestic and international transit routes in Europe.

In 2008 the company embarked on an intensive restructuring program, including reducing its workforce by 39 percent, introducing a new organizational structure and with more contemporary standards of customer service. In 2010, this resulted in PKP Cargo recording a profit of 60 million zloty.