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Gryglas, MAP: We want to significantly increase the share of SP in PKN Orlen after the merger with Lotos
Author:Mariusz Dasiewicz
The Ministry of State Activities will want to lead to a significant increase in the share of the Treasury in the combined group during the merger process between PKN Orlen and the Lotos Group, provided Deputy Minister of State Assets Zbigniew Gryglas.
"MAP very closely controls the PKN Orlen and Lotus merger process. Our positive decision for this transaction will depend on three elements: when the final terms are known, we will assess whether it is beneficial for the State Treasury and the merging entities – any threat to Poland's energy security will mean that we do not agree to the merger – and finally, in the course of the transaction we will want to lead to a significant increase in the State Treasury's share in the combined group" - said Gryglas during the meeting of the Parliamentary Committee on Energy, Climate and State Acts.
Currently the share of the State Treasury in PKN Orlen is 27,52% and in the Lotos Group 53,19%.
"Despite the concerns of some Members, this transaction is a chance to survive for Lotus, because such companies, managing one refinery, will not be able to cope with the problems associated with coronavirus and more broadly with the European Green Deal," added PKN Orlen's board member for financial affairs Janusz Szewczak.
The process of taking over the Lotos Group's capital by PKN Orlen was initiated in February 2018 by signing a letter of intent with the Treasury, which holds 53.19% of the votes at the general meeting in Gdańsk. In November 2018, PKN Orlen submitted a preliminary version of the request for approval of the concentration to the European Commission and its final version, in early July 2019. In addition, an agreement between PKN Orlen and the Treasury and the Lotos Group was signed at the end of August 2019. On 14 July 2020 PKN Orlen received conditional approval from the European Commission to take over the Lotos Group.
The Lotos Group is a vertically integrated oil company that deals with the exploration and extraction of oil, its processing and wholesale and retail sales of high quality petroleum products. Consolidated sales revenue reached PLN 29.49 billion in 2019.
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