Poland's Orlen scraps three-year-old plan to sell PVC maker Anwil

24 September 2012 15:17  [Source: ICIS news]

LONDON (ICIS)--PKN Orlen has scrapped its plan to sell major polyvinyl chloride (PVC) producer Anwil, sources at the Poland-based petrochemicals group said on Monday.

Early this year, Orlen launched an internal review of its divestment strategy for Anwil - which, including the PVC capacity of its Czech subsidiary Spolana, has an overall PVC capacity of 340,000 tonnes/year - after not receiving any substantial offers for the firm following the rejection of the ZAP bid.

Orlen has been open to offers for Anwil, also a nitrogen fertilizer producer, for the past three years and in June 2010 rejected an offer from Polish fertilizer group Zaklady Azotowe Pulawy (ZAP), citing differences over conditions of a potential transaction.

“The review concluded that our balance sheet has improved since we put Anwil on the market and so asset sales such as that of this subsidiary are no longer necessary, especially given the difficult markets,” a source at Orlen said.

“Management has accepted the review conclusion, Anwil is no longer for sale,” he added.

“In a way, we find it unfortunate that, instead of taking advantage of the fairly good external environment and potential selling opportunities, Orlen is backtracking on this non-core divestiture,” Robert Rethy, an analyst at WOOD & Company investment bank, said in reaction to Orlen's change of heart.

By: Will Conroy
+44 20 8652 3214

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