Poland’s ZAT to start due diligence on taking ZAK majority stake

28 July 2010 12:56  [Source: ICIS news]

PRAGUE (ICIS)--Zaklady Azotowe Tarnow (ZAT) has decided to start due diligence on taking a majority stake in fellow state-held Polish chemical company Zaklady Azotowe Kedzierzyn (ZAK), ZAT said on Wednesday.

ZAK has proposed that ZAT acquire 30m new shares that would be made available by a share capital increase.

“Acquiring the shares would give ZAT a 53% stake in the increased share capital and thus control over ZAK,” said investment bank Wood & Company.

The bank said that the valuation, which would be at a nominal value per share of zloty (Zl) 5 ($1.60, €1.25), implies a market capitalisation of Zl 285m for ZAK.

This “would be significantly more than the approximate Zl 100m offered by Petro Carbo Chem for an 86% stake in ZAK [during the recent failed privatisation attempt],” said the bank.

The Polish treasury ministry has suggested that if ZAT and ZAK were to be consolidated, a new effort at privatising the companies could be made.

ZAK makes nitrogen fertilizers, plastics and oxo-alcohols, while ZAT produces nitrogen fertilizers, caprolactam and polyamide 6.

($1 = Zl3.08/€1 = Zl4.01)

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By: Will Conroy
+44 20 8652 3214

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