GDANSK (Reuters) -Polish chemical firm Grupa Azoty plans to issue 33.7 million shares worth about 600 million zlotys ($165 million) addressed to Poland’s state treasury, the company said late on Wednesday.
The issuance is aimed at strengthening Grupa Azoty’s capital and ensuring a flexible, diversified financing base, it said in a statement.
The planned share issue comes after the company earlier in November unveiled a strategy aimed at restoring profitability after a period of heavy losses.
The state treasury’s stake in the company will not exceed 50% following the transaction, Grupa Azoty said. Currently it holds a 33% stake.
Additionally, the company plans a possible issue or several issues, excluding pre-emptive rights, of up to 40.5 million shares addressed to market investors and the state treasury.
The company said funds from the issuance would improve reliability and efficiency of key fertilizer installations, optimize production capacity, reduce risks and downtime, and enhance safety while generating cost savings.
In the advanced chemistry segment, it will strengthen plastics, pigments and sulfuric acid production.
In the logistics segment, the company plans to modernize operations, expand transshipment capacity and develop competencies in rail logistics. Its ammonia hub project will also be partially financed.
Grupa Azoty shareholders will vote on the share issue at the extraordinary general meeting scheduled for February 13. Adoption of the resolution requires at least four-fifths of the votes.
($1 = 3.6365 zlotys)
(Reporting by Adrianna Ebert; Editing by Milla Nissi-Prussak)
