02 June 2010 12:46 [Source: ICIS news]
PRAGUE (ICIS news)--Zaklady Azotowe Tarnow (ZAT) is considering purchasing a substantial minority or majority stake in fellow Polish chemical and fertilizer company Zaklady Azotowe Kedzierzyn (ZAK), it said on Wednesday.
Both companies were considering their options following the cancellation of the privatisation of Poland’s chemical group II - which comprised ZAT, ZAK and the country's largest chemical group Ciech - and the purchase of ZAK could release very useful synergies, said ZAT CEO Jerzy Marciniak.
ZAT - which faces a battle to obtain shareholders’ consent to its February purchase of the polyamide 6 business of Germany’s Unylon AG, and which is also looking at acquiring Ciech’s Fosfory Ciech phosphorous fertilizer unit by the end of this year - may pick up an initial ZAK stake through a planned initial public offering (IPO). “However, I do not want to spend more cash than is planned by our expenditure targets,” said Marciniak.
Any purchase of ZAK shares might be financed with bonds, convertible bonds or credit, noted Wood & Company investment bank.
Deputy treasury minister Adam Leszkiewicz said the treasury ministry would not oppose the plans announced by ZAT “as long as we are presented with a business justification for any deal”.
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