MFDnes carries a report today that Conoco will pay two-thirds of the total CZK 11.7 bil. Unipetrol privatization price (this implies CZK 7.8 bil.); Conoco will take ownership of Ceska rafinerska and Benzina; Agrofert (the winner of the recent privatization tender) will own the rest of Unipetrol’s assets. We estimate the stake in Ceska rafinerska is worth approx. CZK 7.5 bil., and that the equity stake in Benzina is worth zero. The news is therefore neutral to positive, since it eliminates fears of Conoco paying too low price for the refining assets.
(Jiri Soustruznik)