Russian company Akron may lose 20% in Polish fertilizer producer Azoty
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Akron may lose 20% in the Polish fertilizer producer Azoty. This share was frozen by the Polish authorities a year ago, and now it has been subject to compulsory external management with the prospect of subsequent sale or confiscation. The deal is unlikely to be a market deal, experts say, but the Russian shareholder should not expect to receive funds anyway. Experts believe that Akron has time to develop defense tactics, taking into account the experience of other Russian companies, such as NOVATEK, whose assets in Poland have already been put up for sale.
The Polish government has imposed compulsory management of a 20% stake in the local fertilizer producer Azoty, which is owned by the Russian Akron (the main owner is Vyacheslav Kantor). This was announced on July 11 to journalists by the Minister of Development and Technology of Poland, Waldemar Buda. “Today we are depriving him (Vyacheslav Kantor.— “b”) the right to dispose of shares, and our goal is to deprive a Russian of shares and companies belonging to him with the help of a legal mechanism,” the minister said. Akron declined to comment.
Waldemar Buda noted that while Polish laws do not allow the confiscation of Akron’s share, however, it is possible to formally pay compensation to Vyacheslav Kantor, while freezing the money.
In the future, Azoty Group may be bought by the Polish petrochemical concern Orlen. In early summer, the companies signed a corresponding agreement of intent.
Azoty Group is one of the largest fertilizer producers in Europe. The company also produces engineering plastics, oxoalcohols and plasticizers. Acron bought a 13% stake in Azoty Tarnow in 2012, while Warsaw was initially not happy with the new shareholder. However, Vyacheslav Kantor had firm plans to bring the share to 79%, having gained control. To prevent this, the company’s authorities and management merged the company with Zaklady Azotowe Pulawy, merging them into Grupa Azoty. As a result of the transaction, Acron’s share was diluted to 8.91%. But by mid-2014, the Russian company again brought its stake to 20% by buying shares from the market. At the same time, the Polish regulator accused the company of violating the rules when making an offer, but in the end the investigation ended in nothing. Then, from time to time, there were rumors about a possible sale of Akron’s stake to the Polish authorities or other investors. The last time such negotiations were held in 2017 with the Polish Development Fund, and the transaction amount was estimated at about $ 410 million. Kommersant’s interlocutors doubt that if the package is sold now, the transaction price will be market.
Acron is not the only Russian investor in Poland threatened with loss of assets.
The Polish authorities introduced forced management of the Polish assets of Gazprom (48% in EuRoPol Gas, the operator of the Polish section of the Yamal-Europe gas pipeline). Also on the sanctions list of the country, and then under the control of the government, was the structure of NOVATEK Novatek Green Energy (trader of LPG and liquefied gas). According to Waldemar Buda, Poland is already engaged in the sale of the last asset, and the funds from the transaction are planned to be frozen, not transferred to NOVATEK.
According to Pen & Paper senior partner Anton Imennov, Acron, unlike Vyacheslav Kantor, is not included in the EU sanctions lists, but since April 2022 it has been on a separate Polish sanctions list. At the same time, the expert explains, the Polish constitution prohibits the expropriation of property, which is why the Polish authorities creatively use the mechanism of placing assets under compulsory management with the subsequent payment of compensation. This mechanism appeared in Polish legislation in July 2022 in the form of amendments to the law on sanctions and can be applied to the assets of any sanctioned person, says Mr. Imennov. According to him, the Polish-style forced management consists in the creation of a temporary administration that will prepare the asset for sale and monitor the observance of the rights of third parties. The final decision on the sale is made by the Polish court. Anton Imennov notes that Acron has the opportunity to evaluate the possibilities of challenging such practices in court using the example of NOVATEK, which has already filed lawsuits both in Poland and in the EU Court of Justice.
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