PKN wants to divest a part of its LPG trading company Orlen Gaz, the company sells LPG in tanks. Serving LPG at its filling stations, however, remains core activity for the company. PKN hopes PLN 150m (US$ 54m) for its LPG tank business. Among the companies expressed their interest in the investment are the biggest foreign consortiums and investment fund companies.
Our view: We welcome PKN effort to sort out non-core businesses. Gearing of the company is already high which makes the financing of core refinery investments stretched. However, due to the relatively low size of the divestment, we do not expect a major market reaction to the news.