ORLEN Group takes full ownership of Unipetrol

​PKN ORLEN has finalised a transaction to buy all shares in Unipetrol, its Czech subsidiary. The transaction will enable the Group to better exploit synergies and implement optimisation measures more effectively. It will also bring tangible benefits to the Czech company by significantly strengthening its competitive position in the region.

“The purpose of any integration process is to create an entity that will operate much more efficiently as a whole and that will be better positioned in a competitive market. The Unipetrol acquisition will make the ORLEN Group stronger and – coupled with the planned takeover of Grupa LOTOS – will allow us to better compete on the demanding European market. Therefore, we regard the closing of the Unipetrol acquisition as a milestone on the path towards further growth of the ORLEN Group,” said Daniel Obajtek, CEO and President of the PKN ORLEN Management Board. “Increasing our petrochemical production capacity is one of our strategic objectives, with the construction of a PE3 polyethylene unit in Litvínov being the key project right now. The Litvínov production unit will significantly strengthen Unipetrol’s position in the fast-growing petrochemical sector, both in the Czech Republic and within the ORLEN Group,’ added Mr Obajtek.

The share acquisition process was carried out in accordance with applicable Czech laws. The General Meeting’s decision of August 28th 2018 was preceded by submission of all required documents and clearance from the Czech National Bank for the purchase of Unipetrol shares at a proposed price of CZK 380 per share. As of today, PKN ORLEN has taken full ownership of the Unipetrol shares.

Unipetrol a.s. is the largest refining and petrochemical group in the Czech Republic. It owns the refineries in Litvínov and Kralupy, the largest local retail chain Benzina (over 400 service stations), and Spolana, the sole PVC and caprolactam manufacturer on the Czech market. The group’s core asset is its Litvínov petrochemical operations – now the construction site for a PE3 unit, a project designed to strengthen the ORLEN 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 project will enhance Unipetrol’s position in one of the world’s most promising industries.

Unipetrol acquisition timeline:
* December 12th 2017 – PKN ORLEN, holding a 62.9% equity interest in Unipetrol a.s., launches a conditional voluntary tender offer for shares in the Czech company.
* February 23rd 2018 – PKN ORLEN makes payments to the minority shareholders who responded to the voluntary tender offer for Unipetrol a.s. shares, with the value of the transaction totalling approximately PLN 3.5bn. The Group meets the condition of reaching a specified tender offer threshold and secures a 94.03% stake in the Czech company.
* May 22nd 2018 – PKN ORLEN Supervisory Board approves the acquisition of the remaining shares in Unipetrol, representing approximately 5.97% of its share capital.
* May 23rd 2018 – PKN ORLEN applies to the Czech National Bank for approval to acquire Unipetrol shares representing approximately 5.97% of the company’s share capital.
* June 20th 2018 – PKN ORLEN secures clearance from the Czech National Bank for the acquisition of Unipetrol shares representing approximately 5.97% of the company’s share capital.
* August 28th 2018 – Unipetrol General Meeting approves the acquisition by PKN ORLEN of Unipetrol shares representing approximately 5.97% of the company’s share capital.
* October 1st 2018 – PKN ORLEN takes full ownership of Unipetrol shares.