Polish builder PBG's shares plunge on share issue report
WARSAW, July 8
WARSAW, July 8 (Reuters) - Shares in troubled Polish builder PBG plunged 39 percent on Monday on a press report it is planning a giant share issue as part of a restructuring deal with creditors.
The Parkiet newspaper said PBG had proposed to creditors that it would issue 535 million new shares on top of its 14.3 million existing shares. That could cut the stakes of existing shareholders, which include ING's Polish pension fund.
However, PBG's largest shareholder and former chief executive, Jerzy Wisniewski, would see his stake reduced only to 23.5 percent from the current 27.2 percent, according to the newspaper report.
"We have made a proposal to creditors, which in our opinion gives them an attractive rate of return," Jacek Balcer, PBG's head of communication, told Reuters. He declined to give further details of the proposals.
PBG used to be one of Poland's largest construction companies, but was forced to seek bankruptcy protection last year after it made losses on road building contracts.
Parkiet said PBG was hoping to sign a restructuring deal with creditors that include Unicredit's Bank Pekao SA, Santander's BZ WBK bank and ING's local unit by the end of August.
PBG is engaged in a number of Poland's strategic power projects. Its Rafako unit is part of a consortium lined up to build an 11.6 billion zloty ($3.5 billion) coal-fired power project in Opole planned by Polish utility PGE.
PBG is also part of a consortium building a 2.1 billion zloty terminal for liquefied natural gas (LNG) in the Baltic Sea port of Swinoujscie.
($1 = 3.3600 Polish zlotys) (Reporting by Marcin Goettig; Editing by Mark Potter)
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