ZA Puławy - IPO or sector consolidation via PKN Orlen?

Nafta Polska (NP) has still not found an investor for the ZA Puławy nitrogen plant, which is the biggest nitrogen producer in the country. As a result the idea of floating the company on the stock exchange has returned. "It would be good if the debut took place by the end of the year," said ZA Puławy president Zygmunt Kwiatkowski. "It is possible because the enterprise was ready for such a move three years ago, but these plans were cancelled. But now it would be enough to update the old issue prospect". NP president Krzysztof Żyndul is also in favor of this concept. Meanwhile, PKN Orlen would like to take over ZA Puławy, which would allow it to merge the entity with Orlen's subsidiary Anwil, which is the second largest nitrogen producer. Such a step would help Orlen to compete on the single European market. (Puls Biznesu, p. 7) A.F