PKN ORLEN wins bid for Unipetrol
PKN ORLEN's bid for a 62.99% stake in Unipetrol a.s. ('Unipetrol') has won approval from the Czech Government. Poland's largest downstream oil company, will also acquire a 9.76% stake in Spolana, a.s., as well as receivables towards some of the companies of Unipetrol Group owned by Ceska konsolidacni agentura (“CKA”). The transaction is expected to be completed by the end of 3Q 2004.
PKN ORLEN has agreed to pay approx. CZK 11.3 billion for the 62.99% stake in Unipetrol, CZK 1.0 m for CKA’s 9.76% stake in Spolana and approx. CZK 1.7 billion for CKA’s receivables with a total nominal value of approx. CZK 3.1 billion and EUR 9.5 m and USD 4.9 m, as of April 1, 2004.
A large portion of the funds for the financing of this transaction is already provided in the form of the currently available credit facilities. The reminder will be arranged for within the time periods indicated in the payment schedules relating to the transaction. The completion of the transaction will not result in any violation of any covenants under the syndicated credit facility agreement. The banks have already offered PKN ORLEN their assistance in financing the transaction in question.
Following the acquisition of the stake in Unipetrol, and in accordance with Czech law, PKN ORLEN will launch a mandatory tender offer to acquire the interests of minority shareholders in Unipetrol and its listed subsidiaries. PKN ORLEN has agreed on the basis of the agreements with ConocoPhillips Central and Eastern Europe Holdings B.V. (“ConocoPhillips”), one of the major oil and gas worldwide companies and Agrofert Holding, a.s., the second largest chemical group in the Czech Republic (“Agrofert”), following the successful completion of the privatization process, to procure as a majority shareholder in Unipetrol the sale by Unipetrol some of Unipetrol’s assets to ConocoPhillips and to Agrofert.
PKN ORLEN will provide investors with more details on this transaction when it signs the Share Sale and Purchase Agreement with the Czech National Property Fund. The transaction is expected to be finalised by the end of the third quarter of 2004, once necessary regulatory approvals have been granted.
Commenting on the news, Zbigniew Wrobel, President and CEO of PKN ORLEN, said:
"This transaction strengthens PKN ORLEN’s position as the leading Central and East European downstream oil and petrochemicals player, and further demonstrates that PKN ORLEN is spearheading consolidation in the region."
