Polands biggest refiner is placed buying the countrys biggest gas group, since the government pushes to combine state-controlled energy teams and produce a nationwide champ.
Pkn orlen said on tuesday it had signed a page of intent to purchase pgnig, the most recent in a few purchases.
Orlen announced earlier so it had received eu authorization to accomplish its long-planned merger with lotos, another polish refiner. in addition it purchased the utility energa early in the day this year.
Orlen stated the combination of the four groups would produce a business with yearly revenues of around 200bn zloty ($50bn) and profits before interest, taxation, decline and amortisation of about 20bn zloty.
Financial details of the takeover have actually yet to-be concurred. orlens market capitalisation is about 26bn zloty, with pgnigs about 28bn zloty.
Jacek sasin, polands minister for state assets, said the combination was needed for poland to participate regarding global stage. its essential to create huge entities which, after combining their particular investment spending plans, will be able to perform strong and ambitious jobs, he stated.
We are element of an europe which many energy organizations already have their particular consolidation processes behind them. they certainly were sustained by the governments of the nations by which they've been energetic. generating organizations that span several areas, which count in europe and also the globe, is a component associated with the economic climate plan of our government.
Stocks in pgnig hopped regarding the news, and sealed up 3.99 percent in warsaw. stocks in orlen shut down 4.69 percent.
Analysts said that as the tie-up between orlen and lotos could bring benefits, the reasoning of incorporating with pgnig had been debateable, particularly because of the weakening economic environment.
In the long term, the combination with lotos makes sense...but i believe regarding the combination with pgnig individuals will notice it as more linked to politics than company, stated michal kozak at trigon in warsaw.
There was a certain risk, because if as it happens we have actually bad conditions in refining, which will be a cyclical business...and if we increase this the huge opportunities [that is going to be necessary for these deals], after that investors could start to use a discount to those organizations.
But daniel obajtek, orlen chief executive, stated the idea of this deal was partly to create a business less subjected to market cycles. if we need depend on the business chart of europe, we need to complete [this project], he stated. so that you can spend and think about growth in the long term, you 'must' have steady and diversified incomes.