The government agreed yesterday to sell its majority stake in Unipetrol to the Polish PKN Orlen; PKN offered CZK 13.05bn for the state's 63% stake and other assets. The purchase agreement should be ready to sign in a week. PKN CEO Z. Wrobel said it would launch a buyout offer for all minority shareholders (37% free float), as required by the Czech Commercial Code. Expected. Source: Reuters, CTK.
The transactions still have to be reviewed by both the Czech Anti-Monopoly Office (AMO) and the European Commission, which may take several months. According to the National Property Fund, the transaction should definitely be completed by the end of 2004. Do not forget that the AMO will also assess whether the splitting of the bid among separate assets is "fair", specifically the amount paid for Unipetrol equity (CZK 11.3bn or CZK 99 per share) and for subsidiaries' debts with a nominal volume of CZK 4.5bn to the state-owned CKA agency (CZK 1.75bn).
Note that Unipetrol stock resumes trading on the PSE today.
Jan Hájek, Patria Finance