On 16 July 2008, the Warsaw Stock Exchange held a press briefing attended by Under-Secretary of State at the Ministry of Treasury Micha? Chyczewski and the WSE President Ludwik Sobolewski.
The acquisition of a stake in Ukrainian exchange INNEX by the WSE was the main topic of the meeting. The transaction which resulted in acquiring 25% of shares from existing shareholders was concluded on 10 July 2008 (transaction settlement date). After opening the WSE Representative Office in Kyiv on 25 June 2008, the transaction is yet another step in developing the cooperation between the Warsaw bourse and the Ukrainian market.
This event is part of our strategy to build the most favourable relations possible with markets in the region, among which the Ukrainian market is of key importance - WSE President Ludwik Sobolewski said - We aim to modernise and develop their infrastructure as well as contribute to establishing regulations facilitating capital flows between Ukraine and Poland. We also aim to present the Polish market and our stock exchange to Ukrainian companies as well as to promote Warsaw as a financing venue for Ukrainian firms. We do not treat the acquisition of INNEX's shares as a purely financial investment. We have created a capital accord which is the foundation for assisting in building a modern stock exchange in Ukraine. Our presence in the INNEX exchange is to yield the best possible cooperation and partnership with INNEX shareholders as well as its management aimed at developing their market.
President Sobolewski reminded that the Ukrainian market is appealing to both the biggest European stock exchanges and Russian ones - This is another reason why we believe becoming an INNEX shareholder is a major success - the WSE President said.
Under-Secretary of State at the Ministry of Treasury Michal Chyczewski congratulated the WSE for becoming an INNEX shareholder - As a result of this transaction, the integration of the Polish and Ukrainian capital markets will proceed more smoothly. This event falls in line with the Government's vision of Polish-Ukrainian cooperation which should materialise in a greater number of transactions of this kind. The Ukrainian market is exceptionally interesting from the point of view of the Polish financial sector, as well as other sectors of the economy. We do have quite a lot to catching up to do compared to investors from other countries. The step which has just been made by the Warsaw bourse has decreased that gap and I am convinced that it will have a positive outcome both for the Ukrainian and Polish economies. The acquisition of INNEX shares lays solid foundations for thinking about the Ukrainian market in a very practical manner. The WSE becomes, as a company, the Polish leader on the Ukrainian market and I believe that it will maintain this position. I want to confirm the support of the Polish Government for this type of endeavours and any initiatives strengthening economic relations between Poland and Ukraine.
INNEX organises a secondary market in stocks, bonds and options as well as conducts tenders for Ukrainian companies being privatised. INNEX is a joint-stock company. INNEX is a successor to the Doneck stock exchange created in 1995. In 2005, INNEX was licenced by the State Securities and Markets Commission (the Ukrainian regulator) to operate a stock exchange. In 2006, the exchange's seat was moved from Doneck to Kiyv. The aim of this migration was to position the exchange as a national bourse. INNEX has currently 106 shareholders including 104 companies (97% share) and 2 individuals (3% share). There are 76 transaction intermediaries among corporate shareholders including 11 large commercial banks.
Separately, On 16 July 2008, the Warsaw Stock Exchange held a press briefing attended by Under-Secretary of State at the Ministry of Treasury Micha? Chyczewski and the WSE President Ludwik Sobolewski.
The privatisation of the WSE was the second subject of the press briefing. The WSE President Ludwik Sobolewski said that the project is proceeding according to schedule and that the issue prospectus shall be completed soon. Mr Sobolewski stressed that the formal submission of the prospectus to the Polish Financial Supervision Authority (PFSA) for approval is subject to concluding the legislation process regarding the amended Act on Public Offering and the Act on Trading in Financial Instruments. This process will be completed with the President of Poland signing the documents.
Under-Secretary of State at the Ministry of Treasury Michal Chyczewski added that the prospectus, once completed, may be submitted to the PFSA in a consultation mode. - In the mean time [before the Acts are signed] the Ministry of Treasury will ask the PFSA to review the prospectus in light of the changes in regulations and privatisation proceedings being under way. We shall use this time to answer any questions the PFSA may have. We believe that once the Acts are formally signed by the President, the PFSA will not need much time to approve the prospectus - added Minister Chyczewski.