Poland’s dominant gas firm and LNG importer, PGNiG, said it has agreed terms for the conversion of its shares into PKN Orlen stock as part of a takeover deal.
Under the deal, PGNiG shareholders will receive 0.0925 PKN Orlen shares for each PGNiG share they hold.
The proposed merger is subject to the resolutions of the general meetings of PKN Orlen and PGNiG and other conditions.
These meetings will take place in September/October and the two firms expect to close the deal in October or November.
This deal comes just weeks after PKN Orlen secured European Commission’s clearance of its merger with the Lotos Group.
These mergers would create an integrated and diversified Polish multi-energy corporation with a market capitalization of about 87 billion Polish zloty ($18.7 billion), according to PKN Orlen.
Also, the combined entity would have “significantly stronger position” in the European market and enhanced financial stability.
Following completion of the merger with PGNiG, the Polish government would roughly own about 52 percent of the combined entity, other PKN Orlen and Lotos shareholders 35 percent, and other PGNiG shareholders 13 percent, PKN Orlen said.
