Unipetrol outlines framework for sale of Spolana

01-Nov-06

Petrochemical group Unipetrol has agreed to sell its PVC subsidiary Spolana to the Polish chemical group Anwil, another PVC maker. The sale price for this widely anticipated deal, totaled Kc 1.3 billion (€ 45.83 million): Kc 640 million for Unipetrol's 81.78% stake in Spolana and Kc 660 million for the repayment of debts that Spolana owes to Unipetrol. Anwil, which is 84% owned by Unipetrol's majority shareholder, Polish refiner PKN Orlen, plans to invest significantly in Spolana in the coming years, in capacity expansion and building up new production facilities. The sale is the first of two major divestments Unipetrol has made to refocus the group on its core activities of refining, fuel retail and petrochemicals. The second step will be the sale of polystyrene subsidiary Kaucuk, expected to be concluded this year. Unipetrol's new petrochemical strategy, to be unveiled in December, will center around the production of polyolefins, an area where the company can best compete.