Poland cancels Ciech privatisation adviser tender

23 January 2012 11:51  [Source: ICIS news]

LONDON (ICIS)--The Polish treasury ministry has cancelled a tender to select an adviser for the privatisation of its controlling stake in chemical group Ciech, the ministry said on Monday.

The economic situation was too “volatile and unpredictable” to guarantee the sale process would fetch a reasonable price for the stake in Ciech, Europe’s second-largest soda ash maker, it added.

In mid-December last year, the ministry indefinitely postponed a decision on when to relaunch the privatisation of all major chemical assets that remain in state hands, but said it would at least continue to look for a Ciech selloff adviser to make substantial progress with sale preparatory work.

A source at Ciech said Polish press reports that the adviser selection process was abandoned following difficulties at toluene di-isocyanate (TDI) subsidiary Zaklady Chemiczne (ZACHEM) as a result of falling prices on oversupply, as well as possible job cuts, were wide of the mark.

“The TDI markets are bad for ZACHEM at the moment, plus the company has to find a way forward with the unions in terms of its restructuring, but I dont think you can call the ZACHEM trouble decisive [in the adviser tender cancellation],” he said.

For more on toluene di-isocyanate please visit ICIS chemical intelligence

By: Will Conroy
+44 20 8652 3214

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