Bookbuilding begins in Poland's Zaklady Azoty Tarnow's ZChP offer

07 July 2011 11:06  [Source: ICIS news]

LONDON (ICIS)--Bookbuilding has begun for Zaklady Azoty Tarnow’s (ZAT) bid for a stake of up to 66% in fellow Polish chemical company Zaklady Chemiczne Police (ZChP), ZAT said on Thursday.

Just prior to the start of ZAT’s call for shares in second-largest Polish fertilizer producer and titanium dioxide (TiO2) maker ZChP, Poland’s BRE Bank concluded that its offered price of Zl 11.50/share ($4.15/share, €2.91/share) was attractive.

BRE concurred with Erste Group Bank, which on 1 July concluded that the bid was fair and should be accepted by the treasury ministry who, as the owner of 59.4% of ZChP, would prove decisive in whether the offer succeeds.

Shareholders had until 16 August to respond to the bid, which would not proceed unless the ZAT group a producer of nitrogen fertilizers, caprolactam (capro), nylon 6 (or polyamide 6) and oxo-alcohols was able to buy at least 51% of ZChP shares, ZAT said.

Together, ZAT and ZChP would form Poland’s largest chemical group, with annual revenues exceeding Zl 5bn compared with the approximate Zl 4bn in annual revenues earned by current-largest company, Ciech.

ZAT and ZChP are majority-owned by the state. Analysts say that their consolidation would create a strong and sizeable entity that could lead to a successful privatisation. Previous attempts to privatise the companies separately have failed.

($1=Zl 2.77, €1=Zl 3.95)

By: Will Conroy
+44 20 8652 3214

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