Ciech privatisation brought forward a year to 2009

24 July 2008 14:55  [Source: ICIS news]

PRAGUE (ICIS news)--Ciech, Poland's largest producer of base chemicals, is likely to have its privatisation brought forward by one year to June 2009, the Polish Ministry of the Treasury said on Thursday.

 

In a statement on meetings between Treasury Minister Aleksander Grad and the new Ciech management, the ministry said talks had looked at concrete investor interest in the company that could be missed if the sell-off was earmarked for a date a long way ahead on the privatisation calendar.

 

The Polish state only owns 36.68% of Ciech but has special voting rights that give it boardroom control.

 

Ciech has lobbied for an acceleration of the privatisation, saying that it could boost its strategy of spending up to zlotys (Zl) 4.8bn (€1.47bn/$2.31bn) over the five years to 2011 on a series of investments and acquisitions at home and abroad.

 

The company is currently involved in trying to pick up major shareholdings in Polish nitrogen fertilizer producers Zaklady Azotowe Tarnow (ZAT) and Zaklady Azotowe Kedzierzyn (ZAK), which are also undergoing privatisation as part of the new Polish government's commitment to completely exit the country's chemical sector by 2011.

 

Ciech, Europe's second biggest producer of soda ash used in glass production, comprises a group of more than 30 companies that had combined annual sales of Zl3.5bn in 2007.

 

Other activities of Ciech subsidiaries include production of plant protection chemicals, phosphate fertilizers and chemicals for the furniture, construction and food industries.

 

($1 = €0.64, $1 = Zl2.07)

By: Will Conroy
+44 20 8652 3214

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