PKN ORLEN has secured clearance from the Czech National Bank for the purchase of Unipetrol shares representing approximately 5.97% of the company’s share capital. The approval paves the way for a squeeze-out at a price of CZK 380 per share that is fair to both PKN ORLEN and the minority shareholders.
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"The clearance from the Czech National Bank for the squeeze-out is very good news. As the sole owner of Unipetrol, PKN ORLEN will be able to achieve better returns on capital employed by maximising synergies across the Group to increase the efficiency of our Czech plants. This will help us consolidate our position in the region and further enhance our ability to effectively respond to market challenges", explains Daniel Obajtek, CEO and President of the PKN ORLEN Management Board.
The transaction is expected to be finally settled by the end of 2018. It will be financed with PKN ORLEN’s own funds and with a syndicated loan facility available to the Company. It is expected that after the transaction is completed, PKN ORLEN’s net debt will remain at a safe level and should not adversely affect the Company’s credit rating.
PKN ORLEN manages six refineries in three countries. As part of optimisation processes in recent years, the ORLEN Group merged its assets in the south of Poland to be able to better respond to challenges in the external business environment. To successfully face the current and future market developments, the Group focuses on improving the operational excellence of its production plants and strengthening its market position against competitors. The measures also cover the Group’s assets in the Czech Republic.
At present, the ORLEN Group is engaged in the construction of a PE3 unit there, a project designed to strengthen the Group’s position in Central Europe’s chemical and petrochemical markets. The new unit in Litvínov, with an annual capacity of some 270,000 tonnes, will help increase the utilisation rate of the olefins unit and facilitate stronger integration of the petrochemical and refining production. Smooth implementation of this and other projects will enhance Unipetrol’s position in one of the most promising industries in the world.