Chemapol seizes Spolana stake

30 August 1999 00:00  [Source: ICB]

Bankrupt Czech chemical conglomerate Chemapol has succeeded in its attempts to acquire a 30% stake in fellow Czech company Spolana from financial holding company Bankovni.

Alexander Vacek, the court-appointed administrator for Chemapol, last week approved the deal which had been signed before bankruptcy proceedings against it began in January this year. It is not clear how Chemapol paid for the stake, valued at Koruna1.4bn ($401m), although the shares were part of a buy-back option Chemapol installed when it previously sold the stake to Bankovni holdings in 1997.

Chemapol now owns 48.5% of Spolana and is the largest shareholder. That position may not last long, however, as a lowering of Spolana's share capital, a decrease in share price to about 60% of nominal value and a proposed debt for equity swap are likely to result in a dilution of Chemapol's stake.

Meanwhile, bankruptcy procedures are continuing against Chemapol. Up to 175 creditors are together claiming more than Koruna16bn from Chemapol.

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