On February 2nd 2015, PKP CARGO and KGHM Polska Miedź S.A. concluded a preliminary agreement pursuant to which PKP CARGO will take over 49% of shares in the Pol-Miedź Trans (PMT) company, which is currently fully owned by KGHM. Both parties intend to finalise the transaction in the second quarter of 2015.
The agreement provides for a continuation of the process aimed at a take-over of 49% of shares in PMT by PKP CARGO in exchange for a contribution in cash and in kind in the form of locomotives. The agreement authorises PKP CARGO to audit PMT and submit a relevant request to the Office of Competition and Consumer Protection.
KGHM consistently pursues the strategy of focusing resources on its core business activity. The acquisition of a strategic partner of the railway part of Pol-Miedź Trans provides such an opportunity. The transaction will be preceded by the separation of other areas of the enterprise's operation.
"Car transport and trade in fuels will be transferred from Pol-Miedź Trans to other companies within our group as organised (independent) parts of the enterprise without changing the current employment rate and levels of employment benefits," says Herbert Wirth, President of KGHM Polska Miedź. "The project is in line with the long-term strategy of our group to focus on our core activity. An industry partner for our railway operations will allow us to decrease capital expenditure in this area and to strengthen PMT on the rail transport market."
"Cooperation with KGHM is a perfect example of implementation of the strategy to strengthen the position of PKP CARGO in Poland as well as our offer for large industrial groups that handle rail transport with their own resources. Drawing on the top quality of our services, our rolling stock and know-how, together we may develop profitable synergies for all interested parties," says Adam Purwin, President of the Management Board of PKP CARGO.
To PKP Cargo the investment in PMT entails expanding its customer base and a more effective use of its rolling stock. KGHM Polska Miedź, in turn, benefits from the transaction due to access to Poland's largest, constantly modernised rolling stock and a broad offer of logistic services of PKP CARGO.
PMT now has ca. 2.4 percent share in the freight transport market, a reliable income source and good financial standing. The company has access to varied rolling stock comprising 61 locomotives and 1493 railway wagons for bulk products. Owing to the cooperation with PMT, PKP CARGO is going to acquire a subsequent source of reliable income, new commercial contacts and increase the scale of its operations.