31 Jul 2024 15:33

Poland ends temporary management of Acron's shares in Grupa Azoty by court ruling

MOSCOW. July 31 (Interfax) - Poland has terminated temporary management of Acron's shares in the chemical holding Grupa Azoty, the Polish company said in a statement.

Grupa Azoty S.A. received a notification on behalf of Radoslaw Kwasnicki, appointed temporary manager of the stake in July 2023, regarding the loss of control over the shares by a court ruling.

The Provincial Administrative Court in Warsaw had previously granted requests by Acron entities Norica Holding S.a.r.l., Opansa Enterprises Limited and Rainbee Holdings Limited, which together own 19.82% of Grupa Azoty shares, to annul the decision to establish temporary management.

Grupa Azoty said Acron's shares remained frozen due to sanctions imposed by the European Union in the spring of 2022 against Acron's largest shareholder Vyacheslav Kantor and companies associated with him. The Acron entities are still unable to receive dividends or carry out transactions with Grupa Azoty shares.

"The termination of temporary management does not affect Grupa Azoty's operations or its relationships with trade partners in various countries," the Polish company said.

Acron became a shareholder in Azoty Tarnow, now Grupa Azoty, in 2012, buying more than 13% shares. Acron was ready to buy a controlling stake in Azoty Tarnow, however, Azoty Tarnow's management and the Polish authorities were against Acron's proposal. To protect itself from a potential takeover by Acron, the Polish company's management decided to merge with Zaklady Azotowe Pulawy. As a result, Grupa Azoty was formed, and Acron's state was diluted to 8.91%. Acron then gradually increased its stake.

Acron has not actively participated in the management of the company, remaining in the role of a portfolio investor.

Grupa Azoty is one of the largest chemical holdings in Europe, and specializes in the production of engineering plastics, nitrogen and complex fertilizers, oxoalcohols and plasticizers. Poland's Treasury is the biggest shareholder with 33%.