Orlen Group merger set for autumn: press
PKN Orlen CEO Daniel Obajtek expects its acquisition of state-controlled Polish energy player PGNiG to go ahead in late October or November this year, Reuters reported August 1.
Obajtek's comments come after Orlen's shareholders approved its takeover of Poland-headquartered refining company Grupa Lotos earlier this month. The three-way merger is aimed at creating a supercharged Polish energy giant, safeguarding domestic energy security and meeting demand elsewhere in central Europe.
PKN Orlen expects the merged entity to generate an annual turnover of around 250bn zloty ($56.6bn), with around 100mn downstream customers across Poland, Lithuania, Latvia, Estonia, the Czech Republic and Latvia.
PGNiG has agreed on the conversion terms for exchanging its shares to PKN Orlen stock under the merger agreement. Poland's state treasury currently owns 71.9% of PGNiG's share capital and will hold a 52% stake in the new Orlen Group once the merger is completed. Warsaw wants to keep Orlen Group in the private sector, meaning it needs to hold a public tender to bring its stake below 50%, Reuters said.