Poland approves Lotos investment plans: official
August 26, 2014
Poland's Treasury Ministry approves investment plans by fuel group Lotos, but needs to conduct further analysis before deciding whether to participate in firm's planned share issue, Treasury Ministry officials said on Monday.
"Investments in own oil fields and further improvement in refining efficiency are natural development directions for Lotos," deputy Treasury Minister Rafal Baniak told the PAP news agency.
Lotos plans to raise PLN 1 bln through a rights issue of 55 mln shares, with the raised funds to be used to build a coker at the Gdansk refinery and for extraction projects, mostly on the Baltic Sea.
The Treasury Ministry seems positively inclined to the issue but will take a formal decision after analyzing the situation, ministry officials have said.
"I hope those will be positive decisions of all shareholders but as of today we are in the process of analysis," Treasury Minister Wlodziemierz Karpinski said at a press conference on Monday.
"A potential participation of the Treasury in the share issue is subject to a positive assessment of investment projects of the company meeting detailed criteria, which will allow to say that the Treasury is acting like a private investor in market conditions," Baniak said on his part.
"We will analyze this project thoroughly so as to have 100% certainty that we know Lotos's management intent, that we fully understand its motives and aims," he added.
Earlier on Monday Lotos signed a deal with Poland's investment support vehicle PIR for PLN 333 mln in financing for the B8 extraction project on the Baltic Sea and another USD 210 mln in financing deals with BGK and Pekao banks.