Stock investor to launch €241m Poland chems investment fund

23 July 2012 13:31  [Source: ICIS news]

LONDON (ICIS)--A Polish stock market investor is to launch a zlotych (Zl) 1bn ($292.4m, €241.0) investment fund dedicated to the development of Poland's chemical industry, the investor said on Monday.

Zbigniew Jakubas said he and other investors who will participate in the fund have been spurred on by the new consolidation of the Polish chemical sector.

However, Jakubas is not content with the valuation of Zaklady Azotowe Pulawy (ZAP) in the major transaction of that consolidation, namely the merger of ZAP with fellow Polish chemical group Zaklady Azoty Tarnow (ZAT) to create Europe's third largest fertilizer producer with revenues exceeding Zl10bn.

ZAT plans to carry out the merger by tendering for 32% of ZAP and by using a share swap agreement to acquire the 60.1% of the company directly and indirectly controlled by the treasury ministry.

The transaction will be carried out at approximately 2.5 ZAT shares per ZAP share.

A ratio of 3:1 would be fair, said Jakubas, who owns a substantial but unspecified minority stake in ZAP.

Investment bank WOOD & Company reacted to the pressure from Jakubas for an increased share swap ratio by saying in an investor note that with the state treasury in control of a 60% stake in ZAP, a successful outcome to the merger appears to depend on clearance being granted by the anti-monopoly office, not on investor participation in the tender.

($1 = Zl3.42, €1 = Zl4.15)

By: Will Conroy
+44 20 8652 3214

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