Board of Poland’s ZAT recommends purchase of ZAK stake

08 September 2010 13:17  [Source: ICIS news]

PRAGUE (ICIS)--The management board of Zaklady Azotowe Tarnow (ZAT) has recommended that the company go ahead with the purchase of a 53% stake in fellow Polish state-controlled chemical producer Zaklady Azotowe Kedzierzyn (ZAK), ZAT said on Wednesday.

A 4 October ZAT extraordinary general meeting would be asked to approve the zloty (Zl) 150m ($48.2m, €37.9m) transaction, which would be made possible by a share capital increase issued by ZAK, a nitrogen fertilizer, oxo-alcohols and polyamide 6 producer, it added.

A ZAT offer for an 89.46% stake in phosphorous fertilizer unit Fosfory Ciech, held by state-controlled Polish chemical group Ciech, could be made by 15 September, ZAT also announced. Rival offers could come from at least two other interested parties, Ciech said.

The management of ZAK, meanwhile, said part of the acquisition proceeds received from ZAT could be spent on takeovers abroad.

ZAT, ZAK and Ciech featured in a package that Polish chemical industry restructuring agency Nafta Polska failed to privatise earlier this year because of unsatisfactory bids.

The treasury ministry said a consolidation of ZAT and ZAK could lead to a relaunch of the privatisation process for the two firms in 2011.

ZAT produces nitrogen fertilizers, caprolactam and polyamide 6.

($1 = Zl 3.11, €1 = Zl 3.95)

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By: Will Conroy
+44 20 8652 3214

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