Russia's Acron extends bid deadline for Poland's ZAT for third time

29 June 2012 10:09  [Source: ICIS news]

LONDON (ICIS)--Acron Group has for a third time extended the deadline for shareholders to agree to its offer for their holdings in Polish chemical group Zaklady Azoty Tarnow (ZAT), the Russian mineral fertilizer producer said on Friday.

The deadline, originally set for 22 June, has now been moved from 6 July to 13 July, it added.

Analysts at investment bank Wood & Company anticipated that Acron, which has so far bid zlotych (Zl) 1.5bn ($434m, €350m) for up to 66% of ZAT, might raise its bid price from the current Zl 36 to more than Zl 40 per share.

“Although the treasury ministry has stated that it will once again analyse the bid if the price is raised, the final outcome of the transaction remains questionable and will also depend on the extroardinary general meeting (EGM) on 14 July, during which, the ZAT group intends to vote on a 'poison pill' - an option to raise its share capital by up to 75% [and thus dilute any holding Acron may obtain], within three years,” said an analyst at the bank, Piotr Drozd.

A higher price would put pressure on the treaury ministry to sell its controlling 32.05% stake in ZAT, but the political considerations of Poland allowing the sale of a strategic chemical asset to historical rival Russia “may prove more meaningful”, he added.

ZAT is a producer of nitrogen and multi-component fertilizers, caprolactam (capro), polyamide 6 (or nylon 6), oxo-alcohols, plasticisers and titanium dioxide (TiO2).

($1 = €0.80)
($1 = Zl 3.46 , €1 = Zl 4.29)

By: Will Conroy
+44 20 8652 3214

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