Poland's ZAT/ZAP share swap gets under way

07 January 2013 15:47  [Source: ICIS news]

LONDON (ICIS)--Poland's Zaklady Azoty Tarnow (ZAT) has opened a four-day subscription period in which Zaklady Azotowe Pulawy (ZAP) shareholders can swap ZAP shares for ZAT shares to contribute to the creation of the Grupa Azoty chemical group, ZAT said on Monday.

Until 10 January, ZAT is offering 2.5 of its shares per ZAP share, as it seeks to establish what will be Europe's second largest fertilizer producer, it added.

ZAT, which already owns 10.3% of fertilizer, caprolactam (capro) and melamine producer ZAP, will meet its target of pushing that stake up to at least 60% if the Polish treasury ministry agrees to swap its 50.7% shareholding in ZAP for ZAT shares.

Investment bank WOOD & Company has recommended that ZAP shareholders accept the offer from ZAT, which already trades under the Grupa Azoty brand name.

The combined companies should benefit from cost savings of zloty (Zl) 100m ($31.7m, €24.3m) in the first year, it estimated.

No opposition to the merger from competition regulators at the European Commission was expected, the bank added.

“[ZAT] management is certain that the clearance will be given as, prior to the 4 January deadline outlined in the Commission's best practice rules, the Commission had not voiced any concerns over the deal,” an analyst at the bank, Piotr Drozd, said.

($1 = Zl 3.15, €1 = Zl 4.11)

By: Will Conroy
+44 20 8652 3214

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