Polish treasury allows Zaklady Azoty Tarnow's ZChP acquisition

08 July 2011 11:43  [Source: ICIS news]

LONDON (ICIS)--Poland’s treasury ministry has agreed to sell its 59.4% stake in Zaklady Chemiczne Police (ZChP) to Zaklady Azoty Tarnow (ZAT) in a consolidation of state-controlled Polish chemical producers, the ministry said on Thursday.

“Such a consolidation process is an overture toward the full privatisation of this part of the chemical sector,” said the Polish treasury minister, Aleksander Grad. He also said that a strong, single entity should prove attractive in a sell-off, which he said would be conducted “in the not-too-distant future”.

On 7 July, ZAT launched bookbuilding for its share call in which it is seeking to buy up to 66% of ZChP, Poland’s second-largest fertilizer producer and titanium dioxide (TiO2) maker, at an offered price of Zl 11.50 ($4.20, €2.93) per share.

Shareholders have until 16 August to respond to the call.

Together, both companies would become Poland’s biggest chemical group with annual revenues expected to exceed Zl 5bn, said Erste Group Bank.

The ZAT group is a producer of nitrogen fertilizers, caprolactam (capro), and nylon 6 (or polyamide 6). Late last year it became the majority-owner of Zaklady Azotowe Kedzierzyn (ZAK), a fellow producer of nitrogen fertilizers and maker of oxo-alcohols.

Ciech – another state-controlled group – is currently Poland’s largest chemical maker. Ciech is also Europe’s second-largest soda ash maker and a producer of toluene diisocyanate (TDI), bringing in approximately Zl 4bn in yearly revenues.

Previous attempts to separately privatise ZAT, ZChP, ZAK and Ciech had failed.

($1 = Zl 2.74, €1 = Zl 3.93)

By: Will Conroy
+44 20 8652 3214

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