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WARSAW, Aug 21 (Reuters) - Zygmunt Solorz-Zak, one of Poland’s richest men, will have the right to gain a majority stake in utility ZE PAK during an initial public share offer in the company later this year, the Polish Treasury Ministry said on Tuesday.
The agreement clears a question mark hanging over the flotation of ZE PAK, which is valued at more than 2 billion zlotys ($607 million) and is a key part of Poland’s 10 billion zlotys privatisation target this year.
The Treasury has imposed conditions on allowing Solorz-Zak’s conglomerate Elektrim to increase its stake, which stands at 47 percent when grouped with the holdings of various units as part of an earlier privatisation agreement.
Under the agreement, if Solorz-Zak’s companies sell their stake in ZE PAK before the end of 2015 at a price exceeding the valuation in an IPO, the Treasury Ministry would rake in the premium.
The deal could help clarify the ownership of ZE PAK, helping increase the IPO’s appeal to investors.
ZE PAK, which controls power stations with total capacity of less than 2.5 gigawatts, produces 96 percent of its power from lignite, the second most important source of energy in Poland after hard coal. ($1 = 3.2967 Polish zlotys) (Reporting by Maciej Onoszko; Editing by David Holmes)