Warsaw, 29/07/2022 (ISBnews) – The general meeting of PKN Orlen, which will decide on the merger with Polskie Górnictwo Naftowe i Gazownictwo (PGNiG), will be held in September, and the general meeting of PGNiG in October 2022, while the merger will be registered and finalized in October – November 2022, PKN Orlen reported. “Orlen and PGNIG general meetings are expected to be held in September and October 2022, respectively, and the merger will be registered and finalized in October / November 2022,” reads the investor presentation on the merger of PKN Orlen and PGNiG. On July 29, 2022, PKN Orlen and PGNiG agreed and concluded a merger plan, providing for a share exchange parity in the ratio of 1: 0.0925. As a result of the proposed transaction, up to 534 million new series F shares in PKN Orlen will be issued for the existing shareholders of PGNiG. After the transaction is finalized, the State Treasury’s stake in the merged concern is expected to amount to approx. 52%, compared to 27.52% now and approx. 36% after the merger with Grupa Lotos. Market capitalization (according to valuations as of July 28 this year) would increase to approx. PLN 87 billion, compared to PLN 47 billion (PKN Orlen plus Grupa Lotos) and PLN 34.7 billion (PGNiG) currently.
The merger of PKN Orlen and PGNiG will stabilize the revenues and flows of the integrated concern
The inclusion of Polish Oil and Gas Mining (PGNiG) in the integrated PKN Orlen concern will stabilize the financial results of PGNiG, which has a strong exposure to changes in oil and gas prices due to the dominant role of the upstream segment, PKN Orlen reported. On the other hand, the gas distribution segment of PGNiG, with the potential for further growth, will enable the achievement of stable financial flows, independent of the economic situation, ensuring the funds necessary to finance investments. “We prove that we are successfully implementing projects that strengthen the Polish energy sector, build its resistance to market shocks and strengthen independence from raw material suppliers. This approach will not change. Creating strong concerns with diverse, complementary areas of activity is not only an international standard, but also a necessity from the point of view of the challenges of the energy transformation and the success of further development of our economy. That is why it is so important to skillfully implement strategic assumptions. For us, it is primarily investments in zero- and low-emission energy sources, and thus the modernization of the energy sector of Poland and the entire region. Using the strengths of each of the companies, we will allocate the funds necessary for investments in further prospective areas of activity. In this way, we are building lasting value for shareholders, customers and local communities, ”said the president of PKN Orlen, Daniel Obajtek, quoted in the press release. “The activities of PKN Orlen, Grupa Lotos and the PGNiG Group are complementary in many areas. We have a wide portfolio of exploration and production licenses, we invest in alternative energy sources, and we develop the heating sector. We have an extensive distribution network and natural gas storage facilities. By combining the experience and capital of both entities, we will significantly expand the offer for our clients, both business and individual. As one concern, we will also gain a completely new negotiating position – both in the case of the purchase of raw materials and entry into the international fuel and energy market. The merger also means new opportunities for professional development in a concern with a strong, international position. PGNiG employees with their experience and knowledge will support the development of competence centers, in particular in the area of hydrocarbon exploration and production, gas distribution and storage, as well as heat and electricity generation, ”added Iwona Waksmundzka-Olejniczak, President of PGNiG.
Both companies announced today that they had agreed a merger plan and the share exchange parity in the ratio of: 0.0925 PKN Orlen shares in exchange for 1 PGNiG share. PGNiG has been listed on the Warsaw Stock Exchange since 2005. The Group deals with the extraction of natural gas and crude oil in the country, the import of natural gas to Poland, gas storage in underground gas storage facilities, distribution of gas fuels, as well as the development of natural gas and crude oil deposits in the country and abroad as well as the provision of geological, geophysical and exploration services in Poland and abroad. Consolidated sales revenues of the company reached PLN 69,964 million in 2021. The PKN Orlen Group manages six refineries in Poland, the Czech Republic and Lithuania, and also conducts mining activities in Poland and Canada. Its consolidated sales revenues reached PLN 131.5 billion in 2021. The company has been listed on the WSE since 1999. (ISBnews) Follow us on Google News. Search for what’s important and stay up to date with the market! Watch us >>
