27 April 2011 17:01 [Source: ICIS news]
LONDON (ICIS)--Zaklady Azotowe Pulawy (ZAP) has completed its acquisition of an 89.46% stake in fellow Polish fertilizer producer Fosfory Ciech, ZAP said on Wednesday.
ZAP, which makes nitrogen fertilizer, bought the stake in phosphorous fertilizer company Fosfory Ciech from ?xml:namespace>
The deal also involves ZAP repaying Fosfory Ciech’s loans of Zl 121.4m, which are owed to Ciech.
“The Fosfory deal is a key element of our long-term business strategy. With our entry into the phosphorous fertilizer segment, we can expand our product range and strengthen the distribution business,” said ZAP CEO Pawel Jarczewski.
Fosfory Ciech has its own port infrastructure, noted Jarczewski, adding that this would help ZAP expand its sales in foreign markets.
ZAP, located in Pulawy, southeastern
Ciech hoped the divestment of Fosfory Ciech would help raise important capital for its ongoing restructuring process.
“This transaction, together with the recently conducted successful [secondary] public offering of our shares, is a tool in the thorough restructuring of the Ciech group,” said Ciech CEO Ryszard Kunicki.
Fosfory Ciech has an annual fertilizer capacity of 400,000 tonnes. It also produces sulphuric and phosphoric acid.
The Polish treasury said in early April that this year could see another attempt at privatising ZAP.
($1 = Zl 2.70, €1 = Zl 3.94)
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