Unipetrol increases its interest in Česká Rafinérská
Unipetrol increases its interest in Česká RafinérskáOn November 7th 2013, UNIPETROL, a.s. (“Unipetrol”), an ORLEN Group company, signed an agreement with Shell Overseas Investments B.V. (“Shell”) to acquire shares in ČESKÁ RAFINÉRSKÁ, a.s. (“Česká Rafinérská”), representing 16.335% of its share capital. The transaction was valued at USD 27,2 m.
Following the transaction, which is expected to be closed early next year, Unipetrol's interest in Česká Rafinérská will rise to 67.555%, giving it a qualified majority of votes in the company.
"We consider our presence on the Czech market to be a long-term commitment. It is my strong belief that the acquisition of Česká Rafinérská shares from Shell will provide sound support for the implementation of the primary objectives set in the Unipetrol Group Strategy 2013-2017," commented Jacek Krawiec, President of PKN ORLEN and Chairman of the Unipetrol Supervisory Board.
The transaction will improve the availability and security of feedstock supplies for Unipetrol's petrochemical segment, contributing to its further growth. In line with the strategy, the company plans to consolidate its competitive position in the Czech Republic and the neighbouring markets by growing its petrochemical business.
It is expected that by 2017 the largest portion of capital expenditure will have been spent on petrochemical projects. Concurrently, in pursuit of its key development objectives, the company will continue to make efforts to secure stable and uninterrupted energy supplies for the entire Group and to optimise its operating activities. As envisioned in its corporate strategy, the increased shareholding in Česká Rafinérská will facilitate successful expansion of Unipetrol's share in the fuel market to 20%.
ČESKÁ RAFINÉRSKÁ, a.s. operates the refineries in Litvínov and Kralupy, which are the only refining facilities currently in operation in the Czech Republic, with a total throughput capacity of 8.7 million tonnes per annum. The company is managed by three partners: UNIPETROL, a.s., ENI International B.V., and Shell Overseas Investments B.V., which as at November 7th 2013 hold, respectively, 51.22%, 32.445% and 16.335% of the company's share capital.
