Unipetrol increases its shareholding in Česká Rafinérská
On November 7th 2013, UNIPETROL, a.s. signed a share purchase agreement with Shell Overseas Investments B.V., for Shell’s 16.335% shareholding in ČESKÁ RAFINÉRSKÁ, a.s. with the acquisition price for the shares in the amount of 27.2 USD million.
Unipetrol currently owns 51.22% of the Česká Rafinérská’s share capital. After completion of the Transaction expected at the beginning of 2014 Unipetrol shareholding interest will increase to 67.555% of the share capital.
"I am confident that the transaction further confirms our main strategic objective to ensure Unipetrol's long-term growth. It also strengthens our long-term presence on the Czech market," said Marek Świtajewski, Unipetrol's CEO. “Moreover the transaction brings Unipetrol the Qualified majority of votes in Česká Rafinérská with 67.5% threshold, allowing significant improvement of the company's operational management and bringing operational costs savings. The acquisition of Shell’s shares at the same time improves feedstock security for petrochemical segment development,” added Świtajewski.
“By this move we are contributing to Shell’s global strategy of reducing its manufacturing footprint. I am pleased to see both parties benefitting from this transaction,” said Petr Pražský, Country Chair Shell Czech Republic and General Manager Retail Central & Eastern Europe.
The acquisition of the shares further supports one of the main strategic targets of the announced Unipetrol Group Strategy 2013-2017 – further integration of the refining and petrochemical segments. This integration will facilitate maximum supply to internal captive demand for petrochemical and retail segments.
Improved availability and security of the petrochemical feedstock, together with maximum utilization of own captive demand will provide basis for planned development of the petrochemical segment, where Unipetrol plans to make the largest capital expenditures, in order to leverage on the favorable market conditions to reinforce its competitive position and optimize its operations to create the main profit maker of the Group. Additionally operational cost savings will further support strategic target of Unipetrol Group to have stable reliable energy sources to secure its energy needs at optimized costs. Increased shareholding interest in Česká Rafinérská will also facilitate targeted expansion of the retail segment to 20% market share in 2017.
ČESKÁ RAFINÉRSKÁ, a.s. operates refineries in Litvínov 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 three shareholders as of 7 November 2013: UNIPETROL, a.s. 51.22%, ENI International B.V. 32.445% and Shell Overseas Investments B.V. 16.335%. It was established in 1995 and started operating in the processing mode with no sales activities in 2003.
- Mikuláš Duda