Bloomberg reports that the put option held by Unipetrol bondholders and bank creditors can be excised if the ownership structure of Unipetrol changes.
According to the 9M 2001 results, Unipetrol had CZK 6.8 bil of outstanding bonds, and CZK 4.2 of bank loans. The Unipetrol bond yield is currently almost 11%, 2% above the coupon rate, which implies that the option is likely to be excised by the bondholders. Nevertheless, we believe that the lending banks may decide to retain their exposure as they have closer relationships with Unipetrol compared to the bondholders, tough competition in the corporate loan sector could have its impact as well. Unipetrol’s debt restructuring could be, at least partially, financed by the proceeds from the Ceska rafinerska and Benzina sale to Conoco, though the Cabinet must yet approve the sales. As the information regarding the option is not new, the stock should not react.
Today, the National Property Fund and Agrofert will sign a purchase contract for a 62.99% equity stake in Unipetrol, no impact on the stock is expected.
Unipetrol will release its preliminary 2001 CAS unconsolidated results today afternoon, though these are perceived with little relevance on the market. The more important 2001 CAS results of the main subsidiaries will be released on February 20, and consolidated CAS results will be released on April 28. Nevertheless, our unconsolidated CAS projections are:
CZK mil 2001e 2000 change
Sales 151 152 0.0%
EBIT 7 -82 n.m.
EBITDA 20 -69 n.m.
Pretax profit 211 90 133.6%
Net profit 200 121 64.5%