The merger of the Polish firms Orlen with Lotos is a fact

There is a plan to merge Orlen with Lotos, who is still operating in Russia. The companies have signed documents that will be of great interest to shareholders. 

Have signed a merger plan

PKN Orlen and Grupa Lotos have signed a merger plan, which provides for the transfer of all Lotos assets to PKN Orlen in exchange for the shares of the Płock concern, which will go to Lotos shareholders.

For each Lotos Group share currently held, its shareholders will receive 1.075 PKN Orlen shares. “According to the draft merger plan, the shareholders of Grupa Lotos, in exchange for their shares in Grupa Lotos, will be issued, in connection with the merger, merger shares in the following ratio: 1.075 (shares of PKN Orlen): 1 (shares of Grupa Lotos)” – we read in the message.

Half of the shares are owned by the State Treasury

As a result of the merger of PKN Orlen and Grupa Lotos, the share of the State Treasury in the merged concern will increase to approx. 35%. Assuming the merger with PGNiG, this share will increase to approx. 50%, which means that the control over the newly established multi-energy concern will be additionally strengthened, emphasised.

PKN Orlen argues that the adopted formula of the merger is the simplest and fastest solution that can be used in this transaction, which will allow for quick and full integration of assets and individual business segments. The adopted structure of the transaction will also ensure better liquidity of the new group, which will enable the effective continuation of the existing projects and investing in further prospective areas of activity.

 Poland’s energy security and its impact on economic development are our priority. That is why we create a strong, integrated concern with diversified revenues, resistant to extremely dynamic changes in the macroeconomic environment.

As in the case of previous acquisitions carried out by the Orlen Group, we intend to increase the value of the combined Lotos Group by using the strengths of both entities. We will also be helped in this by cooperation with a strong partner, a global leader in the petrochemical industry and the largest oil producer in the world.

As a result, we will contribute to the modernization and further development of our business, while increasing its resistance to the increasingly unstable market environment and building lasting value for shareholders,

“The decisions made today are another important milestone in the process of building a multi-energy concern. The connection with PKN Orlen is of great importance in the context of further strengthening the energy security of both our country and the entire region.

Together, we are able to face the challenges of the energy transformation. The obtained synergies, diversification of activities, as well as higher financial outlays in the R&D area will allow us to remain competitive for the next decades” says Zofia Paryła, President of the Management Board of Grupa LOTOS.

Source: Wprost


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