Poland’s PKN Orlen reconsiders sale of Anwil as markets slow

08 September 2011 17:28  [Source: ICIS news]

LONDON (ICIS)--PKN Orlen stands ready to cancel the planned end-of-year sale launch for nitrogen fertilizer and polyvinyl chloride (PVC) producer Anwil should the faltering world economic recovery drag down the subsidiary's valuation, the Poland-based refining and petrochemical group said on Thursday.

“In the case of Anwil, we continue with internal analysis, along with an assessment of the current market situation,” said Orlen CEO Slawomir Jedrzejczyk.

“We see a dramatic drop in valuations of companies, [but we know] we don't need to rush the sale of Anwil,” he added.

Due to a substantial improvement in its debt situation, Orlen was not under the same pressure to sell noncore assets to raise capital than it was two to three years ago, the company said in a commentary sent out with its second-quarter earnings in August.

According to the current Anwil disposal schedule, Orlen wished to gather all preliminary offers for the fertilizer, PVC or both parts of the subsidiary by the end of this year.

Poland-based fertilizer, melamine and caprolactam (capro) producer Zaklady Azotowe Pulawy (ZAP), which had a binding bid for Anwil turned down in June last year, has said it is seriously considering making a renewed acquisition bid.

The combined PVC capacities of Anwil and its Czech subsidiary Spolana add up to the largest PVC production capacity in central and eastern Europe, at 470,000 tonne/year.

Spolana, with a PVC capacity of 130,000 tonne/year and a 40,000 tonne/year capro business, is being sold in a separate sale process, launched in June.

By: Will Conroy
+44 20 8652 3214

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