No. 26/ 2007
Polski Koncern Naftowy ORLEN S.A. (“PKN ORLEN”), Central Europe’s largest downstream oil company, announces that on 17 May 2007 PKN ORLEN’s subsidiary - Rafineria Nafty Jedlicze Spolka Akcyjna (“Rafineria Nafty Jedlicze”) headquartered in Jedlicze (Poland) has sold all its owned shares in Ran-Petromex Sp. z o.o. a limited liability company (“Ran-Petromex”) headquartered in Opole (Poland) i.e. 510 shares, with a par value PLN 50 per share, for a total price of PLN 100. The sold shares represent 51% of the initial capital of Ran-Petromex and 51% of the votes at the General Meeting of shareholders of Ran-Petromex. The book value of the sold shares in the Rafineria Nafty Jedlicze books amounted to PLN 0, as of 16 May 2007.
The Ran-Petromex shares were sold to a physical person, Mr. Andrzej Kisielewski, who, until now, was a co-owner of Ran-Petromex. Ran-Petromex’s main business activity was gathering processed oil but, since 2002, the activity of Ran-Petromex has been stopped. Ran-Petromex does not have sufficient financial resources to start the company liquidation process.
The main business activities of Rafineria Nafty Jedlicze are the regeneration and purchase of processed oils as well as the production and sale of heating oils.
PKN ORLEN owns 75% of the initial capital of Rafineria Nafty Jedlicze and the same number of votes at the General Meeting of Rafineria Nafty Jedlicze.
The Supervisory Board of Rafineria Nafty Jedlicze consists of nine members, six of whom are PKN ORLEN employees, one is a Paramo a.s. ( a member of the PKN ORLEN Capital Group) employee and one is a Rafineria Nafty Jedlicze employee.
The Management Board of Rafineria Nafty Jedlicze consists of two members, neither of whom are PKN ORLEN employees.
The Management Board of Ran-Petromex consists of one member, the President of the Management Board, who is neither a Rafineria Nafty Jedlicze nor a PKN ORLEN employee.
In accordance with paragraph 2 item 1 point 52 and item 5 “Regulation of the Minister of Finance dated 19 October 2005 on current and periodic information to be published by the issuers of securities” the sold shares constitute “significant assets” due to the fact that they represent 51% of the share capital of Ran-Petromex.