March 21, 2011

Bidders sought for PKP Cargo sell-off

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THE privatisation of Europe's second-largest railfreight operator was launched today when Polish State Railways (PKP) invited expressions of interest for the sale of its PKP Cargo subsidiary.
Potential investors have until May 5 to register for the opportunity to acquire up to 50% plus one share of the company, which last year made a profit of Euros 60 million.

pkpcargo2.jpgCompanies that are authorised to proceed to the next stage of bidding will then be allowed to scrutinise the company's business and financial situation, and seek the legal advice they need to build a binding offer. This will lead to an invitation to tender and PKP will draw up a shortlist of prospective bidders before entering negotiations and choosing an investor.

PKP Cargo has a 55.4% share of the Polish railfreight market and is active in neighbouring countries including Germany and the Czech Republic. Since 2008 the company has gone through a period of extensive restructuring which has seen a 39% reduction in the workforce and a new organisational structure.

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