Azoty Tarnow (ATT), Poland’s biggest chemical maker, gained approval from investors to increase its share capital by 75 percent to buy state-controlled competitor Zaklady Azotowe Pulawy SA (ZAP), PAP agency reported today.
Azoty owners backed management’s plans to issue stock with a nominal value of 240.4 million zloty ($70.4 million), PAP said, citing the result of a shareholders meeting in Tarnow, southern Poland. The issue will be offered to shareholders of Pulawy at a ratio of 2.5 Azoty shares for one Pulawy share, PAP said.
Azoty announced a bid yesterday to buy 32 percent of Pulawy at 110 zlotys a share, after a separate offer for the same company by Poland’s Synthos (SNS) SA at 102.5 zlotys. Azoty sees 100 million zloty in synergies and investment savings of 200 million zloty from the Pulawy merger, according to a presentation for shareholders before the vote today, PAP said.
Poland’s government, which holds a 32 percent stake in Azoty, supports the Pulawy purchase to consolidate the industry, it said in a statement yesterday. The treasury opposes a bid by Russia’s OAO Acron (AKRN) to buy Azoty. Acron’s offer ends on July 16.
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