Looking for the price tag
Poland's largest oil company, PKN Orlen, concluded its takeover of 62.99 percent of the shares in Czech Unipetrol, which it had been negotiating since June last year. Orlen paid CZK11.3 (zł.1.56) billion for the stake, along with another CZK1.7 (zł.0.23) billion for receivables in companies of the Unipetrol group. The company used 90 percent of its own funds and 10 percent from loans to finance the acquisition. Analysts say the move could significantly strengthen Orlen's hand in the region.
Cezary Smorszczewski, the vice president of PKN Orlen, called the takeover "the next step bringing us closer to the position of regional leader in Central Europe," adding: "We will treat the Czech Republic as our second home market, alongside Poland."
Orlen is now awaiting the completion of a review of the company's finances, the results of which will determine the final price of the stake. Orlen's agreement with the Czech government allows for a downward adjustment in price of 25 percent, and an upward adjustment of up to 15 percent. Due to Unipetrol's impressive results last year, some analysts believe that Orlen will be forced to pay more, while others say Orlen could avoid the increase by pointing to the high costs of dealing with past environmental pollution caused by Unipetrol.
Transfer of corporate control over the Czech concern is set to take place in the beginning of June. Orlen must now launch a tender offer to acquire the remaining public shares of Unipetrol - mandatory under Czech law.
Unipetrol officials were also excited about the consequences of the transaction for their firm, which had been looking for an investor that could bring stability.
"I believe that PKN Orlen is a good partner, which will guarantee the stable future development of the group," said Pavel Svarc, president of Unipetrol.
PKN Orlen officials also repeated their intention to sell some of Unipetrol's assets to US-based ConocoPhillips and Agrofert Holding, the second largest petrochemical group in the Czech Republic.
Cezary Smorszczewski, the vice president of PKN Orlen, called the takeover "the next step bringing us closer to the position of regional leader in Central Europe," adding: "We will treat the Czech Republic as our second home market, alongside Poland."
Orlen is now awaiting the completion of a review of the company's finances, the results of which will determine the final price of the stake. Orlen's agreement with the Czech government allows for a downward adjustment in price of 25 percent, and an upward adjustment of up to 15 percent. Due to Unipetrol's impressive results last year, some analysts believe that Orlen will be forced to pay more, while others say Orlen could avoid the increase by pointing to the high costs of dealing with past environmental pollution caused by Unipetrol.
Transfer of corporate control over the Czech concern is set to take place in the beginning of June. Orlen must now launch a tender offer to acquire the remaining public shares of Unipetrol - mandatory under Czech law.
Unipetrol officials were also excited about the consequences of the transaction for their firm, which had been looking for an investor that could bring stability.
"I believe that PKN Orlen is a good partner, which will guarantee the stable future development of the group," said Pavel Svarc, president of Unipetrol.
PKN Orlen officials also repeated their intention to sell some of Unipetrol's assets to US-based ConocoPhillips and Agrofert Holding, the second largest petrochemical group in the Czech Republic.
