Czech security commission rejected PKN buy-out proposal for Unipetrol shares

On July 19, the SEC rejected PKN’s buy-out proposal of CZK103 per share for Unipetrol, CZK701 for Paramo and CZK100 for Spolana. The principal reasons were irregularities in the valuation of the above companies made by an independent expert. PKN now has to revise its bid by July 25. In another case, SEC may impose a fine and /or PKN will not be able to exercise its voting rights and/or minorities may require PKN to purchase their shares within 6 months after July 25. Note that Unipetrol is on Patria’s watch list.

Separately, Unipetrol’s CEO Pavel Svarc, spoke out against the proposed scenarios of the CO2 emissions allocation plan, claiming that under any scenario some chemical companies would be forced to purchase emission credits costing hundreds of millions of CZK. Some PKN representatives reportedly say that PKN may therefore consider lowering the price it paid for the 63% stake in Unipetrol.