In 2009, the Ministry of Treasury has begun a series of privatization processes in the form of public auction. Privatization through auctions is possible due to the amendment to the Commercialization and Privatization Act of December 19, 2008 and investors are now able to buy entire companies instead of partial stakes (up to 10% of shares). The change has enabled the Minister of Treasury to carry out more effective privatization policy.

  (kb 35,5) Auctions 1Q

Auction is a method of privatization that involves publishing the announcements issued by the Minister of Treasury in national newspapers that invite potential investors to take part in it. The process of an auction is carried out as follows: first, a committee responsible for carrying out the auction is appointed. The committee chairman opens the auction, informing the participants of physical persons’ names and surnames or the names or business names of the entities that have paid the bid security, and have been allowed to participate in the auction. The chairman informs the participants of the minimum bidding increment (i.e. the minimum amount, by which the price may be increased by potential investors) and that further increments shall not be acknowledged after the highest bid has been acknowledged for the third time. The participants shall increment their bids orally. If none of the potential investors increments the bid, the committee chairman acknowledges the highest bid three times, and announces the name of the highest bidder and the date and the place of concluding the share purchase agreement.