Poland ferts major Grupa Azoty attractive to large investors - bank

11 January 2013 16:45  [Source: ICIS news]

LONDON (ICIS)--Grupa Azoty, the “EU major” fertilizer group to be formed following the merger of Poland's Zaklady Azoty Tarnow (ZAT) and Zaklady Azotowe Pulawy (ZAP), is likely to be on the radar of large investors, an investment bank said on Friday.

After analysing the outcome of the ZAT/ZAP share swap that will create the basis for the merger, Prague-based WOOD & Company investment bank calculated that the free float of shares in Grupa Azoty will be from 49% to 58%.

“The larger free float is a clear positive, in our opinion, as it potentially places the group on the radar screens of a larger group of investors, and increases the chance for MSCI [Morgan Stanley Capital International] Poland index inclusion and the probability of becoming a [Warsaw Stock Exchange] WIG20 member,” said Piotr Drozd, an analyst at the bank.

The creation of Grupa Azoty, set to rank as Europe's number-two fertilizer producer behind Norway-based Yara International is backed by the Polish treasury ministry which is surrendering its 50.7% shareholding in ZAP at a rate of 2.5 ZAT shares in return for each ZAP share.

ZAT already trades under the Grupa Azoty brand name.

European Commission competition approval for the new group is expected by 18 January, ZAT said.

Grupa Azoty's production portfolio will include nitrogen and multi-component fertilizers, caprolactam (capro), melamine, oxo-alcohols and titanium dioxide (TiO2).


By: Will Conroy
+44 20 8652 3214



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