Poland's PKN Orlen to scrap sale of Anwil if bids are too low

15 February 2010 18:01  [Source: ICIS news]

PRAGUE (ICIS news)--Poland's PKN Orlen could scrap its sale of polyvinyl chloride (PVC) and nitrogen fertilizer producer Anwil, because the bids for its subsidiary have been too low, a source at the company said on Monday.

The investor relations source confirmed that the widespread speculation in the Polish press was correct and said Orlen could abandon the process in favour of attempting to sell Anwil via a flotation on the Warsaw Stock Exchange.

State-controlled Orlen said it had shortlisted three bidders for the company, although the only declared bidder was Polish fertilizer producer Zaklady Azotowe Pulawy (ZAP), which is another company majority-held by the state.

Poland's BRE Bank said its plan to address Orlen's debt-refinancing difficulties by selling non-core assets could hit trouble if Anwil was not sold. Last year Orlen breached bank covenants on its major loans.

Together with its Czech subsidiary, Spolana, Anwil makes up one of central and eastern Europe’s largest PVC producers, with a capacity of 435,000 tonnes/year.

($1 = €0.73)

For more on ammonia visit ICIS pricing fertilizers
For more information go to the ICIS plants and projects database
To discuss issues facing the chemical industry go to ICIS connect

By: Will Conroy
+44 20 8652 3214

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly