Could Orlen Take a Stake in PGZ? “Analyses Are Underway”

Orlen could become a shareholder in Poland’s state-owned defense giant, but the proposal remains at the analysis stage and no decision has been made.

The possibility was reported by the XYZ portal and confirmed as one of several options under consideration by the Ministry of State Assets, according to information obtained by Rzeczpospolita. The potential transaction could involve up to 45% of the shares in Polska Grupa Zbrojeniowa, although sources said that stake appears large and a smaller package may be considered.

The proposal forms part of a wider ministry plan to reorganize ownership across state-owned companies. The defense sector is among the areas where the ministry believes ownership arrangements need to be put in order.

The Supreme Audit Office has repeatedly questioned PGZ’s current shareholder structure. Twenty companies belonging to Polski Holding Zbrojeniowy were consolidated under PGZ in 2014 following a government decision. In exchange, the holding company received 40% of PGZ.

State Assets Minister Wojciech Balczun and Finance and Economy Minister Andrzej Domański presented plans in late August to reorganize the state-company portfolio. Their proposals would allow some state-owned entities to acquire stakes in others, potentially generating significant budget revenue without reducing state control or selling shares outside the public sector.

“I would like to emphasize, however, that these will not be revenues linked to a reduction in the State Treasury’s control over the companies, nor do we plan to sell shares from our holdings outside the public sphere,” Balczun said. He also pointed to unused potential for cooperation and synergies among state-owned companies.

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I would like to emphasize, however, that these will not be revenues linked to a reduction in the State Treasury's control over the companies, nor do we plan to sell shares from our holdings outside the public sphere.