Unipetrol offers Spolana and Kaucuk for sale, PKN to expand Benzina's market share.
Following previous information, Unipetrol is offering its 81.78% stake in Spolana and 100% stake in Kaucuk for sale. Production at Spolana and Kaucuk is focused on plastics and synthetic rubber. The disposals are in line with PKN’s restructuring strategy(PKN holds 63% stake in Unipetrol) of disposing assets which do not directly relate to the main refinery production lines. Our rough estimation of Spolana's and Kaucuk’s value totals some CZK1bn and some CZK2bn respectively. Note that the valuation is indicative only and is based on comparative multiples of its peers and Spolana's and Kaucuk's 1H05 results. Until more details regarding potential interest and price are known, we regard the news as neutral.
Separately, PKN Orlen plans to expand Benzina’s network in order to reach at least 15% of market share in 2008 compared to current 10%. Benzina’s station network is the biggest in the Czech Republic. Benzina is fully owned by Unipetrol. Unipetrol recently increased the capital of Benzina by CZK 1.3bn, from CZK 0.9bn, to strengthen the company’s financial situation. We see this news as slightly positive for today’s trading.