Zaklady Azotowe Tarnow to raise capital for expansion initiatives

27 May 2011 17:48  [Source: ICIS news]

LONDON (ICIS)--Zaklady Azotowe Tarnow (ZAT) will attempt to raise up to zlotych (Zl) 146.7m ($52.0m, €36.9m) in capital through a share increase to finance expansion initiatives, the Polish chemical group said on Friday.

The raised capital would be spent on increasing ZAT’s stake in fellow Polish chemical producer Zaklady Azotowe Kedzierzyn (ZAK) from 52.6% to 93.5% by purchasing shares from Poland's treasury ministry.

ZAT would also use the capital to double its caprolactam (capro) capacity.

ZAT said it could increase its capro capacity by acquiring the 86,000 tonne/year capro business of Czech producer Spolana.

Polish refining, chemicals and petrochemicals group PKN Orlen on 26 May confirmed that at the end of this year it will go ahead with another attempt at selling its subsidiary Anwil, which serves as Spolana’s parent company.

ZAT’s current share capital is divided into just over 39,116,421 shares worth Zl 195.6m. The new share capital valued up to Zl 146.7m, to be offered to existing shareholders, would be divided into 29,337,315 shares, the company said.

ZAT also produces nitrogen fertilizers and polyamide 6 (or nylon 6), while ZAK produces nitrogen fertilizers and oxo-alcohols.

($1 = Zl 2.82, €1 = Zl 3.98)

Please visit Will Beacham’s Look East for Chemicals blog

By: Will Conroy
+44 20 8652 3214

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