Polish ZAT's share bid for ZChP successful

18 August 2011 15:40  [Source: ICIS news]

LONDON (ICIS)--Zaklady Azoty Tarnow (ZAT) has bought a majority stake in Zaklady Chemiczne Police (ZChP), in a move that will create Poland’s largest chemical group by revenue, ZAT said on Thursday.

ZChP shareholders had offered ZAT a total of 74.9% of ZChP shares at the offered price of zlotych (Zl) 11.50 ($4.02, €2.77) per share, a proportion that was more than the maximum 66% that ZAT was seeking to acquire, it added.

During the recent, renewed stock market turbulence, ZChP’s share price has dipped below Zl 10.

Poland’s treasury ministry agreed to sell its 59.4% stake in ZChP, ZAT added.

The ministry said this was in line with its strategy to enable a substantial consolidation of state-held firms, including ZAT and ZChP, before the relaunch of Poland’s chemical industry privatisation process, scheduled for later this year.

ZAT, which produces nitrogen fertilizers, caprolactam (capro) and nylon 6 (or polyamide 6), late last year became the majority owner of another state-held chemical company, Zaklady Azotowe Kedzierzyn (ZAK), a fellow producer of nitrogen fertilizers and maker of oxo-alcohols. ZChP is Poland’s second-largest fertilizer producer and a titanium dioxide maker.

Following the acquisition of a majority of ZChP, the combined ZAT group would have annual revenues in excess of Zl 5bn, said Austria’s Erste Group Bank.

Ciech – another state-controlled group, and Europe’s second-largest soda ash maker and a producer of toluene di-isocyanate (TDI) – is Poland’s largest chemical group, bringing in around Zl 4bn in annual revenues.

($1 = Zl 2.86, €1 = Zl 4.14)

For more visit ICIS pricing fertilizers

By: Will Conroy
+44 20 8652 3214

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