Unipetrol buys out Eni to control Czech refineries

Unipetrol exercised its pre-emptive right and accepted the offer from Eni International BV (Eni), based on which Unipetrol will acquire from Eni 303,301 shares of Ceska Rafinerska, AS (Ceska Rafinerska) amounting to 32.445% of the Ceska Rafinerska’s share capital.

The acquisition price for the shares in the amount of $40.9 million (EUR 30 million), subject to additional adjustments before Transaction completion, will be financed from own financial sources of Unipetrol.

Unipetrol now owns 67.555% of the Ceska Rafinerska’s share capital. After completion of the transaction expected by the end of 2014, subject to obtaining relevant merger clearances, Unipetrol will become a sole shareholder of Ceska Rafinerska with 100.00% shareholding interest of the share capital.

The transaction is an opportunistic acquisition with the aim to gain full control over Ceska Rafinerska, be a sole decision-maker regarding capital investments, perform deeper restructuring of the company, further increase security of petrochemical feedstock supplies for continuation of Unipetrol’s petrochemical business development, as well as strengthen long-term presence of Unipetrol Group on the Czech market, according to company officials.

Ceska Rafinerska operates refineries in Litvinov and Kralupy, currently the only two running refineries in the Czech Republic, with a total conversion capacity of 8.7 million tons of crude oil per year. The company is a joint venture (JV) of two shareholders: Unipetrol with 67.555% and Eni International BV 32.445%. It was established in 1995 and started operating in the processing mode with no sales activities as a cost-plus entity in 2003.