Poland’s ZAT to bid for 100% ownership of ZAP

21 January 2013 10:21  [Source: ICIS news]

LONDON (ICIS)--Zaklady Azoty Tarnow (ZAT) is planning to launch a tender by mid-February to acquire the 16.3% of fellow Polish chemical group Zaklady Azotowe Pulawy (ZAP) it does not own, ZAT said on Monday.

“This follow-up tender for the remainder of ZAP seems to be a natural step,” WOOD & Company investment bank said in a note to investors on ZAT’s announcement.

The buyout of the remaining 16.3% stake would require an outlay of zloty (Zl) 404.9m ($129.8m, €97.6m) if it was conducted at a transaction price of zloty (Zl) 132/share, the latest 90-day average price of ZAP’s share price, the bank added.

At the end of the third quarter last year, ZAT held Zl 326m in cash, while ZAP's cash pile amounted to Zl 312m, according to WOOD & Company’s calculations.

On 18 January, the European Commission consented to ZAT’s takeover of ZAP without setting any competition conditions, such as asset disposals.

ZAT has stated that it will conduct a “merger of equals” with ZAP to form Grupa Azoty, set to be Europe’s second largest fertilizer producer behind Norway’s Yara International.

The Grupa Azoty name is already used by ZAT for branding purposes.

($1 = €0.75, $1 = Zl 3.12, €1 = Zl 4.15)

By: Will Conroy
+44 20 8652 3214

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