Poland’s Ciech receives concrete offer for Zachem subsidiary

24 April 2012 11:58  [Source: ICIS news]

LONDON (ICIS)--Poland-based Ciech has received a concrete offer for its toluene di-isocyanate (TDI) business, Zachem, but is not ruling out the option of closing the subsidiary should no deal for a sale be achievable, the chemical group said on Tuesday.

The company is considering whether to invite the firm behind the offer to hold exclusive negotiations for the acquisition of Zachem or to continue talks with several other investors that might come foward with bids, it added.

However, Ciech conceded the offer was only around the lower range of its price expectations.

The bidder was also interested in Ciech’s polyurethane (PU) foams line, for which Zachem’s TDI was the key input, Ciech said.

The PU line was originally part of Zachem, but last June, Ciech turned it into a separate business unit.

“The Zachem TDI business, a key area of management’s focus and the main point on the restructuring list, is expected [by Ciech management] to show positive quarter on quarter dynamics in Q2,” Wood & Company investment bank said in a note to investors looking at the prospects for a divestment.

“While the prices of amine (the key TDI input) remained stable q-o-q [quarter on quarter], Ciech’s TDI prices are currently trending higher, according to management,” it added.

Zachem, located in Bydogoszcz, northern Poland, also produces epichlorohydrin (ECH) and epoxy resins. It is Poland’s sole, and Europe’s fifth biggest, TDI producer, with 75,000 tonnes/year of capacity.

By: Will Conroy
+44 20 8652 3214

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