may buy an additional stake in Zaklady Azotowe Anwil SA for 130 million zloty ($47 million), Gazeta Prawna reported. PKN
, which holds almost 85 percent of the chemical company may be forced to buy 5.54 percent from the state. The government wants to divest holdings in some companies it doesn't control, Prawna said, citing Treasury spokesman Pawel Kozyra.
Our view: The price implies a total value of Anwil of US$ 850m, which comes as too high for us given that Anwil is mostly a cyclical commodity type petchem company focusing on PVC. The valuation puts Anwil as 12 % of PKN
’s total market cap (US$ 7.2bn) when compared to much lower the profit contribution. Given the small size of the deal, we believe that market reaction could be slightly negative.