Funicular to Kasprowy. PFR wants to debut on the stock exchange, local governments say “no”

The sale of Polskie Koleje Linowe (PKL) in 2013 was a mistake that should not be repeated – said Deputy Prime Minister Władysław Kosiniak-Kamysz on Friday during a meeting with local government officials from Zakopane in the Sejm regarding the plans of the Polish Development Fund (PFR) regarding the company's stock exchange debut.

PKL includes, among others: cable car to Kasprowy Wierch. During the PO-PSL government, 12 years ago, PKL was sold, which caused wide political and social controversy in the region.

The delegation from Zakopane, headed by mayor Łukasz Filipowicz, sought intervention in the matter of PFR's plans, expressing the concerns of Podhale local governments regarding PKL's entry to the stock exchange in order to recapitalize it.

– It was 2013 when PKL was sold – it was a mistake, there were also political consequences. Such mistakes must never be repeated again. Today, the company is in very good condition (…) there is no need to save the situation. This is a well-managed company, said Deputy Prime Minister Kosiniak-Kamysz.

He added that local government officials from Podhale expressed commitment to the development of cable cars and interest in recapitalizing the company. – “I believe that PFR should be as open as possible. We will not allow this company to fall into the wrong hands – we have already been through this and it ended badly. Local governments should be the number one partner for PFR in the development and investments of PKL,” emphasized the Deputy Prime Minister and head of the Ministry of National Defense.

The mayor of Zakopane, Łukasz Filipowicz, reminded that the planned stock exchange debut of PKL raises numerous controversies and concerns in Podhale. – We want the government to consider whether such a debut will be well received. PKL is a unique company, established, among others, on expropriated lands in the Tatra Mountains. It is a company of strategic importance, owning real estate in border areas. We want it to remain under public control – said Filipowicz and explained that the company is doing very well and there is no reason for it to debut on the stock exchange.

– If there is a need to recapitalize PKL, there are alternative possibilities, e.g. citizen shareholding – added the mayor.

The local governments of Podhale are afraid of PKL entering the stock exchange, pointing out that the stock exchange debut will subordinate decisions to the interests of shareholders at the expense of the company's mission and local communities. Meetings of local governments with parliamentarians and government representatives are intended to ensure that decisions regarding cable cars will be made in consultation with the region and with respect for the interests of local communities.

In a statement sent to PAP, the Polish Development Fund emphasized that it is in constant dialogue with municipalities and is analyzing various options for further development of PKL. One of them is the possibility of introducing the company to the Stock Exchange in order to obtain capital for expansion.

PFR assured that in each scenario considered it intends to maintain the controlling stake, which is to guarantee ownership stability and exclude the privatization of the company. The fund also indicated the potential benefits of making PKL public, such as increased investment, new jobs and increased recognition of the region.

In 2013, PKL, then belonging to the PKP SA Group, was sold to Polskie Koleje Górskie, established by four local governments of Podhale. The capital for the purchase – PLN 215 million – was provided by the Mid Europa Partners fund, which took over 99.77 percent. PKL shares. The transaction caused widespread political and social controversy at the time.

In 2018, during the PiS government, the Polish Development Fund purchased PKL shares. Currently, the company includes, among others: cable cars to Kasprowy Wierch, Gubałówka and Butorowy Wierch in Zakopane and ski resorts in Krynica-Zdrój, Szczawnica, Zawoja and Międzybrodzie Żywiecki. (PAP)

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