Boost for Poland's Ciech as ZAP eyes bid for Organika-Sarzyna: bank

12 December 2012 15:45  [Source: ICIS news]

LONDON (ICIS)--The divestment strategy of Ciech has received a fillip with fellow Polish chemical company Zaklady Azotowe Pulawy (ZAP) gearing up to possibly bid for its plant protection chemicals and epoxy resins subsidiary Zaklady Chemiczne Organika-Sarzyna, Raiffeisen Centrobank said on Wednesday.

Having struck an assets sale deal with BASF which will lead to the closure of its Zachem toluene diisocyanate (TDI) business, and despite protests from hundreds of workers, Ciech is looking to dispose of several more subsidiaries including Organika-Sarzyna.

ZAP's potential bid for that unit has received the backing of chemical group Zaklady Azoty Tarnow (ZAT), which is set to merge with ZAP in 2013 to create the new Grupa Azoty group, noted Raiffeisen analyst Dominik Niszcz.

“After the positive surprise related to the TDI [deal with BASF] we are optimistic regarding subsequent transactions, especially given the statement from ZAT about support regarding ZAP's potential bid for Organika-Sarzyna,” he said.

Ciech regarded the subsidiary's plant protection chemicals division as the profit driver, and its epoxy and polyester resins side as rather minor due to low margins, according to Niszcz.

In the 12 months to the end of the second quarter of this year, Organika-Sarzyna achieved sales revenues of zloty (Zl) 618m ($196.8m, €151.1m), Ciech disclosed recently prior to a bond issue.

($1 = €0.77, $1 = Zl 3.14, €1 = Zl 4.09)


By: Will Conroy
+44 20 8652 3214



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