Orlen to bid on remaining stake in Czech Unipetrol

WSE-listed, state-owned oil giant PKN Orlen launched a voluntary tender offer to buy the remaining shares in its Czech peer Unipetrol in which holds a 62.9 percent stake. Orlen is offering CZK 380 per share and will proceed to a purchase if 90 percent of the shares are tendered, allowing the group to proceed to a squeeze-out and delisting it from the Prague bourse. The deal would value the company at PLN 4.19 billion. “In our strategy, we planned average annual investments in 2017 and 2018 at PLN 5.4 billion. Taking full control over Unipetrol will not impact the realization of our other M&A plans nor will it change our dividend policy,” Orlen CEO Wojciech Jasiński said. Orlen hopes that the takeover will increase the synergies by optimization of production planning, supply chain management, simplifying organizational structure and segmental management enforcement. An eventual share purchase should be finalized by February 23, while subscription would run from December 28 to January 30.