Russia's Acron hikes bid by 25% in fight for Poland's ZAT group

13 July 2012 12:37  [Source: ICIS news]

LONDON (ICIS)--Acron Group has increased its bid for up to 66% of Poland's largest chemical group Zaklady Azoty Tarnow (ZAT) by 25%, valuing the takeover target at zlotych (Zl) 1.96bn ($568m, €466m), the Russian mineral fertilizer producer said on Friday.

“We have increased the value of our tender offer for shares in ZAT after extensive negotiations with the shareholders,” said Vladimir Kantor, vice president of Acron, which is facing opposition to its bid from both the management board of ZAT and the largest shareholder in the group, Poland's treasury ministry.

“We are now offering Zl45 per share, which is the highest price of ZAT ever [to have been available to shareholders]. Moreover, the price exceeds the market valuations presented by analysts and other market participants, Kantor said, stating that the improved bid is “the final offer”.

“We want to participate in and support the future development of the ZAT group and ensure long-term value creation. With regard to raw materials, logistics, distribution and sales, the synergies from the transaction will enable us to work together to create one of the largest chemical groups in Europe and the world,” Kantor added in a press release.

In another change to its bid, Acron – which earlier on Friday released improved first-half production figures – said it would now be prepared to buy a significant minority shareholding in ZAT – a producer of fertilizers, caprolactam (capro), nylon 6 (or polyamide 6), oxo-alcohols, plasticisers and titanium dioxide (TiO2) – if a majority stake could not be achieved from the offer, which expires on 16 July.

($1 = Zl3.45, €1 = Zl4.21)

By: Will Conroy
+44 20 8652 3214

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