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 Rafinerskas 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 Rafinerskas 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 Unipetrols 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.
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