This afternoon, UNIPETROL, KAUČUK (UNIPETROL’s subsidiary, a sale of which is being finalised) and FIRMA CHEMICZNA DWORY (a new owner of Kaučuk) signed the Joint Venture Agreement for purposes of a construction and operation of a new butadiene unit within the Kralupy nad Vltavou industrial area. In the joint venture, which will be realized through the company Butadien Kralupy, UNIPETROL will own 51% and KAUČUK 49% of shares.Prague, 10 July 2007 – The companies agreed on creation of a joint venture and cooperation on the construction and operation of a new butadiene unit on 30 January 2007. On that same date, UNIPETROL and the Polish chemical company Dwory also signed the Share Purchase Agreement on the sale of 100% of Kaučuk shares held by UNIPETROL for EUR 195 million (approximately CZK 5.6 billion). Except for the purchase price, the companies agreed in the Share Purchase Agreement on certain other important terms and conditions, including the creation of the joint venture.
Butadien Kralupy, the operator of the butadiene unit, will be a business partner for Chemopetrol and UNIPETROL RAFINÉRIE, which will supply the feedstock (C4 fraction) for the production, and off-take the products (raffinate 1) produced in the butadiene unit. Butadien Kralupy will also supply 1.3-butadiene to Kaučuk.
Further, UNIPETROL and Kaučuk signed today the agreement in which UNIPETROL undertook to grant to Kaučuk the pre-emptive right to certain plots of land owned by UNIPETROL in the Kaučuk industrial area in Kralupy nad Vltavou, which are used by Kaučuk for performance of its business.
The creation of the joint venture and the pre-emptive right represent one of the conditions of the sale of 100% of Kaučuk shares to Dwory. The closing of the sale of 100% of Kaučuk shares to Dwory, as well as the closing of the sale of 51% of the shares of Butadiene Kralupy to UNIPETROL, is still subject to fulfilment of the conditions agreed between the parties in the respective Share Purchase Agreement. As already announced, the fulfilment of the conditions for closing of the transaction is expected to take place in the third quarter of 2007.
UNIPETROL, a.s. is a group of companies operating in the Czech petrochemical industry. In 2005 UNIPETROL became part of the PKN Orlen group, the largest crude oil processor in Central Europe. The UNIPETROL group primarily focuses on crude oil processing, fuel distribution and petrochemical production. In all these areas, the UNIPETROL group is one of the leading players in both the Czech Republic and the Central European market as a whole. In 2006 UNIPETROL posted revenues amounting to CZK 95 billion and its net profit was CZK 1.6 billion. The UNIPETROL Group has about 4,000 employees.
Contact:
Michaela Lagronová
Spokesperson
Unipetrol, a.s.
GSM: + 420 225 001 663
E-mail: michaela.lagronova@unipetrol.cz
www.unipetrol.cz