Effective tender offer for Unipetrol shares

Today, PKN ORLEN made payments for shares tendered by minority shareholders in response to the tender offer for shares in Unipetrol a.s., announced in December 2017. The payments totalled PLN 3,5 bn. Thus, PKN ORLEN fulfilled the condition for recognising the tender as effective and achieved a 94.03% ownership of the Czech-based company.

PKN ORLEN offered a price of CZK 380 per Unipetrol share, which is close to the current market price of the stock. As part of the transaction, 826 acceptances were made by natural persons and 126 by legal persons. Together they represented 31.04% of Unipetrol shares. The transaction will be financed with PKN ORLEN’s own funds and with a syndicated loan facility available to the Company. After the buyout is completed, the Group’s net debt will remain at a safe level, with no effect on its credit rating.

Strengthening of PKN ORLEN’s position in the shareholding structure of the largest refining and petrochemical group in the Czech Republic is in line with the Group’s strategy, which envisages integration of refining assets, extension of the petrochemical value chain, and development of the retail network. It will enable more effective use of synergies within the ORLEN Group and consolidation of its competitive position.

Unipetrol a.s owns the refineries in Litvínov and Kralupy, the largest local retail chain Benzina (400 service stations), and Spolana, the sole PVC and caprolactam manufacturer on the Czech market. The company’s core asset is its Litvínov petrochemical operations – now the construction site for a polyethylene unit, the country’s largest petrochemical project to date.