Poland's Synthos pledges stable employment at takeover target ZAP

27 June 2012 15:07  [Source: ICIS news]

LONDON (ICIS)--Synthos has pledged that it intends to maintain stable employment levels at takeover target and fellow Polish chemical producer Zaklady Azotowe Pulawy (ZAP) in a letter addressed to the trade unions representing the company's 3,500 employees, it said on Wednesday.

Unions at ZAP have expressed anxieties that workforce cuts could be in store if Synthos is successful with its zlotych (Zl) 1.96bn ($576m, €461m) bid for the company.

They are also backing a rival offer to take control of ZAP that has been made by a limited liability company founded by employees, Spolka Pracownicza Chemia-Pulawy.

In its letter, Synthos pointed out that as Europe's second largest synthetic rubber producer it had no production rivalry with ZAP, a major producer of fertilizers, caprolactam (capro) and melamine. There were thus no competition issues that would trigger the downscaling of production units at either company, it said.

Earlier on Wednesday, the Polish treasury ministry, which with its 50.67% stake in ZAP holds the key to the future ownership of the company, said it would respond to Synthos' offer after the first week of July, and by 20 July at the latest.

Shareholders that accept Synthos' purchase offer between 9–20 July are to be paid Zl102.5 per share, while a reduced price of Zl98.77 will be paid for any shares sold before the expiry of the bid on 7 August.

($1 = Zl3.40, €1 = Zl4.25)

By: Will Conroy
+44 20 8652 3214

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