Poland's ZAP increases bid for fertilizer producer Anwil

02 June 2010 17:33  [Source: ICIS news]

PRAGUE (ICIS news)--Zaklady Azotowe Pulawy (ZAP) has increased its bid for a majority shareholding in polyvinyl choride (PVC) and nitrogen fertilizer producer Anwil, Poland's treasury ministry said on Wednesday. 

Erste bank analysts noted the state-controlled owner of 84.79% of Anwil, oil, Polish chemical and petrochemical group PKN Orlen, had been unhappy with what ZAP had offered so far during its exclusive negotiations for the company.

An improved offer increased the probability that ZAP could conclude a deal for Anwil before the negotiating deadline of 30 June at a price likely to fall somewhere between zloty (Zl) 1.4bn-1.8bn ($417.9m-$537.3m, €340.6-€438.0m), they added.

ZAP, an ongoing majority stake in which has been offered to investors in an ongoing privatisation round, is already known as Poland's largest fertilizer group and hopes to create the country's largest chemical group by volumes and revenues by successfully acquiring a controlling stake in Anwil.

Investment bank Wood & Company said the deal would offer ZAP diversification benefits, such as offering the company an opportunity to cut its reliance on nitrogen fertilizers from 60% to around 45% in terms of annual sales.

($1 = Zl 3.35, €1 = Zl 4.11)

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By: Will Conroy
+44 20 8652 3214



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