20 December 2012 12:10 [Source: ICIS news]
LONDON (ICIS)--Poland-based nitrogen fertilizer producer Zaklady Azotowe Pulawy (ZAP) will retain its listing on the Warsaw Stock Exchange (WSE) even after it merges with Zaklady Azoty Tarnow (ZAT) to form the Grupa Azoty group, ZAT said on Thursday.
Under the proposed merger, set to take place early in the new year following a signing of a pre-merger agreement in November, ZAT will increase its shareholding in fellow state-controlled company ZAP from 10.3% to 61%.
However, the remainder of ZAP's shares, will remain available for trading on the stock market, ZAT said.
ZAT will take a majority stake in ZAP by using a capital increase to fund the purchase of the 50.7% of the company held by Poland's treasury ministry at a rate of 2.5 ZAT shares per ZAP share.
With the receipt of the ZAT shares, the ministry will cement its control over Grupa Azoty, which it says will be Europe's second-largest fertilizer group behind Norway-based Yara.
As soon as it is formed, Grupa Azoty will push for cost savings from its increased purchasing power in deals for key feedstocks including coal, natural gas, phenol and benzene, as well as from combining marketing and logistics, ZAT said.
ZAT, as well as two other Polish members of its existing group - multi-component fertilizers and titanium dioxide (TiO2) producer Zaklady Chemiczne Police (ZChP) and nitrogen fertilizers and oxo-alcohols producer Zaklady Azotowe Kedzierzyn (ZAK) - have already rebranded themselves as Grupa Azoty members.
ZAP's subsidiaries include phosphorous fertilizers maker Fosfory, based in Gdansk, where it has an export port on the Baltic Sea coast.
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