Poland's ZAP will not buy Ciech - minister

04 July 2008 14:40  [Source: ICIS news]

PRAGUE (ICIS news)--ZA Pulawy (ZAP) does not plan to acquire fellow Polish chemical company Ciech, according to a statement released on Friday by Polish Deputy Minister of the Treasury Krzysztof Zak.

Speculation about such an acquisition grew in late June when market analysts said the falling market capitalisation of Polish base chemicals producer Ciech had brought it to the attention of melamine, caprolactam and nitrogen fertilizer producer ZAP as a suitable takeover target.

However, Zak dismissed the idea that such a transaction involving the two state-owned firms was set to take place.

Zak was commenting in connection with the government’s revived chemical sector privatisation drive which should see the Polish state exit completely from Poland’s chemical sector by 2011.

Under the strategy, 50.73% of ZAP should be floated on the Warsaw Stock Exchange in 2009 or 2010.

Meanwhile, a Polish newspaper reported that the government may be set to move to replace the top management of Ciech because of differences over how Ciech’s development strategy should be rolled out.

State-owned nitrogen fertilizer maker Zaklady Azotowe Kedzierzyn also said it was going ahead with its plan to debut on the Warsaw bourse in the final quarter of this year or the first quarter of 2009 despite market disappointment at the 27 June stock exchange debut of Zaklady Azotowe Tarnow (ZAT).

ZAT produces nitrogen fertilizer, caprolactam, polyamides and copolymers.

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By: Will Conroy
+44 20 8652 3214

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