Poland’s Grupa Azoty SA is seeking to acquire hydropower producer ZEW Niedzica from the country’s State Treasury, according to a statement by the Polish fertilizer and chemicals company on its website.
Azoty said it has requested the State Treasury, the sole shareholder in ZEW Niedzica, to initiate a process “leading to the potential acquisition and merger of the hydroelectric producer into the Grupa Azoty Group.”
The potential acquisition comes as Azoty moves towards renewable energy sources. ZEW Niedzica’s annual electricity output stands at around 100 GWh.
According to a PAP news report, citing the news service of Business Insider Polska, the deal will likely take the form of a for-equity transaction, reportedly aimed at boosting the State Treasury’s stake in Azoty.
The acquisition would boost the State Treasury’s directly-held stake in Azoty to 42% from the current 33%, and the State Treasury’s overall stake in the company to above 50%, according to the report.
But the real goal of the acquisition is reportedly to weaken the position of Russian shareholder Viatcheslav Moshe Kantor in Azoty, according to the report. Kantor currently holds a 19.41% interest in Azoty via intermediary companies, according to Azoty’s website. Kantor is a large shareholder in Russian fertilizer and chemicals group Acron Group.
Azoty’s takeover of ZEW Niedzica would mean Kantor’s stake in Azoty would reduce to around 17% according to PAP, citing Business Insider Polska.