16 December 2010 12:57 [Source: ICIS news]
PRAGUE (ICIS)--Ciech has accepted a binding bid for its 89.46% stake in phosphorous fertilizer unit Fosfory Ciech from Zaklady Azotowe Pulawy (ZAP), the Polish companies announced on Thursday.
ZAP, which is Poland's largest fertilizer company, would pay around zlotych (Zl) 107.2m ($35.5m, €26.9m) for the stake and take on the obligation to repay loan sums owed by the subsidiary to Ciech amounting to Zl 120.6m, Ciech said.
"We are very pleased with the fact that we managed to negotiate a good price for these assets that are not related to the main activities of the Ciech group. I believe that our colleagues at ZAP are also very pleased, since this is an agreement that will be beneficial to both parties," said Ciech CEO Ryszard Kunicki.
"This is another transaction that shows that we are consistently implementing a programme to restructure the group and improve its financial standing," he added.
In addition to ZAP, five other expressions of interest from
Poland's treasury ministry has committed to relaunching the privatisation of Ciech - postponed indefinitely earlier this year - in 2011 if its restructuring makes good headway.
"The decision of the board of ZAP to make a bid was in line with the strategy of achieving organic growth and an increased scale of operations through the use of mergers and acquisitions at home and abroad, and by developing the product portfolio," ZAP said.
ZAP, which is currently in the latter stages of a privatisation tender, was disappointed in June when
Fosfory Ciech has an annual fertilizer capacity of 400,000 tonnes. It also produces sulphuric and phosphoric acid.
($1 = Zl 3.02, €1 = Zl 3.99)
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