Consent motion regarding Mazeikiu Nafta
Today, 29th September 2006, PKN ORLEN has submitted to the European Commission Directorate General for Competition a consent motion regarding permission for the concentration of PKN ORLEN and Mazeikiu Nafta assets. The receipt of consent from the Commission is the last condition suspending the transaction as defined in the agreements of the Mazeikiu Nafta share purchase from Yukos International UK B.V. and the Government of Lithuania.
On 26th May 2006, PKN ORLEN and Yukos International UK B.V. concluded a share purchase and sale agreement related to the purchase by PKN ORLEN of a 53.70 % stake in AB Mazeikiu Nafta for USD 1.492 m. On 9th June 2006 Kestutis Daukszys, acting as the Minister of Industry of the Government of Lithuania, signed an agreement for the sale of the government’s 30.66% stake to PKN ORLEN for USD 852m. According to the agreements, after completion of the transaction the Government of Lithuania will hold a 10% stake in Mazeikiu Nafta. This stake can be sold by the Government of Lithuania to PKN ORLEN within five years. However, if the option is exercised within first three years the price offered for the stake will equal USD 284m and if within the next two years USD 278m.
The Poland’s biggest international investment ever will lead to the establishment of the biggest CEE refiner in terms of processed crude oil (31.7mta) and number of retail outlets (2,732 stations in Poland, Germany, Czech and Lithuania).
Mazeikiu Nafta is the biggest refinery in the Baltic states, with a maximum crude processing capacity of 10mta. The company is the owner and operator of crude and end-product pipeline networks in Lithuania, as well as marine reloading facilities at the Butinga Terminal. It also operates a retail network of 27 petrol stations.
