Polish bank recommends ZAP shareholders sell to Synthos

11 July 2012 17:27  [Source: ICIS news]

LONDON (ICIS)--Shareholders in Polish fertilizer, melamine and caprolactam (capro) maker Zaklady Azotowe Pulawy (ZAP) should sell their shares to bidder Synthos, a Polish investment bank and brokerage said on Wednesday.

In the 2012/2013 financial year (ended 30 June next year), ZAP's share price was likely to decline to about 10% below the zlotych (Zl) 102 ($29.82, €24.34) per share price on offer from Polish synthetic rubber maker Synthos, IPOPEMA Securities said.

The shares have been trading at around the Zl100 mark for a sustained period but weakening markets ahead were likely to see a softening of that price, it added.

Earlier on Wednesday, another investment bank, Prague-based WOOD & Company, noted support seemed to be strengthening among shareholders for a plan which would see ZAP merged with fellow Polish chemical group Zaklady Azoty Tarnow (ZAT).

With ZAP's managemet opposed to a Synthos takeover, and ZAT's management attempting to fight off a bid from Russian mineral fertilizer producer Acron, the merger option might prove an acceptable way forward for the companies and the controlling shareholder in each firm, the Polish treasury ministry, the bank added.

The bank, which said on Tuesday that anti-monopoly regulators might oppose any such merger attempt, added in a note to investors that “clearing the anti-monopoly office may be a hurdle and [the competition issue] hinges on the definition of the fertiliser/chemicals market (local vs. European)”.

($1 = Zl3.42, €1 = Zl4.19)


By: Will Conroy
+44 20 8652 3214



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