What goes on in Poland on the 12th of May.
The state will increase its stake in Orlen to secure the acquisition of Lotos and PGNiG
The State Treasury will increase its stake in Orlen to enable the acquisition of Lotos and Orlen by way of a cashless transaction. “This is to protect the new establishment from a hostile takeover,” Jacek Sasin, Deputy Prime Minister and Minister of State Assets, argued at a press conference.
Yesterday, the government adopted a resolution that defines the transaction involving the takeover of Grupa Lotos and PGNiG by PKN Orlen. It will be done on the basis of Art. 492 of the Commercial Companies Code. There will be a merger by acquisition and a cashless merger. The Treasury’s stake will be raised from 27 percent to 50 percent.
“This will guarantee that the State Treasury will have the deciding vote in the company. It will eliminate the dangers resulting from a possible hostile takeover. The Treasury will decide on the concern’s activities, and will have an impact on the corporate governance and policy of the new Orlen,” Sasin assured. “There will be a profit for the budget because the new entity will have greater capital and investment opportunities on the way to the energy transformation. It will be earning a lot of money for the Treasury,” he stressed.
The minister emphasized that this endeavor may be worth PLN 450 billion. “Some claim it may be even more. The existing fuels are in decline. Focusing on coal and oil is no longer promising. We need to look for solutions and for this we need investments, capital and know-how. Orlen is already building a science and research center. Whoever fails to take action today will be doomed to failure. Only big companies will count. We want to be an equal partner in this competitive race. The fuel sector also determines our energy security,” he stressed.
Duda: Poland and Romania should cooperate in the development of the energy sector
“I would very much like energy cooperation to develop between Poland and Romania, both on the political and economic level,” President Andrzej Duda said after a meeting with the Romanian President Klaus Iohannis.
During a joint conference with the President of Romania, Andrzej Duda spoke about the development of railway and road infrastructure. “There are two very important aspects to this. On the one hand, the purely infrastructural aspect that is to serve us every day in the economic sense, in the human sense, i.e. in the tourist sense, and in interpersonal exchange. Those are very important elements building our economic potential,” he noted.
According to the President of Poland, the cooperation will result in strengthening Poland’s security. “It is possible to relocate troops quicker, not only by air, but also by land. There is no need to elaborate on this in detail, it is obvious that this development is very important,” the president stressed.
“I would like this energy cooperation to develop both politically and economically. I hope that some political changes will take place here as well,” he added