Poland's ZAT ups ZAP stake to 96%; may delist company

10 April 2013 17:29  [Source: ICIS news]

LONDON (ICIS)--Zaklady Azoty Tarnow (ZAT) is to decide whether to delist fellow Polish chemical producer Zaklady Azotowe Pulawy (ZAP) from the stock exchange, with its stake in the company having moved up to around 96% following a call for shares, ZAT said on Wednesday.

Having built its stake in ZAP to 83.7% in January following a share swap, ZAT has acquired approximately 12% more of the fertilizer, melamine and caprolactam (capro) producer, preliminary figures showed, the group added.

Polish shareholding law would now permit ZAT to announce a squeeze-out of the remaining minority shareholders and subsequently delist ZAP from the Warsaw Stock Exchange, the company said.

The ZAT group, which thanks to its acquisition of ZAP is now Europe's second largest fertilizer producer, behind Norway's Yara International, would most probably go ahead with the squeeze-out and delisting, investment bank WOOD & Company said.

ZAP had become an illiquid name on the stock market and it was no surprise that most of the remaining minority shareholders in ZAP had opted to accept ZAT's offer for their shares, it added.

The ZAT group's production portfolio includes nitrogen, phosphorous and multi-component fertilizers, capro, polyamide 6 (or nylon 6), melamine, oxo-alcohols and titanium dioxide (TiO2).

The group already trades under the Grupa Azoty brand name, which it says will also apply to all its subsidiaries once an ongoing merger and consolidation process is completed.

However, unions at ZAP, which have requested a meeting with ZAT's CEO to discuss workforce rights and ZAP's level of autonomy under the new ownership, are demanding that ZAP keeps its existing brand and name.


By: Will Conroy
+44 20 8652 3214



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