PKN Orlen to acquire remaining stake in Lithuanian refinery

Feb 24, 2009 01:00 AM

The Lithuanian government is to sell off its remaining 10 % stake in the only oil refinery operating in the Baltic states, Prime Minister Andrius Kubilius said. The buyer is Polish energy giant PKN Orlen, which already owns the other 90 % of the Mazeikiu Nafta facility in northern Lithuania, which is one of the biggest commercial enterprises in the Baltics.
"The government is ready to execute its contractual obligation to PKN Orlen on the purchase of a 10 % stake in the near future... I believe that such a sale will take place early in March," Kubilius said.

Kubilius stressed that the state would be getting a considerably better price than the current marketplace would be likely to provide, thanks to the terms of the contract between the government and PKN Orlen.
"Stock prices have plummeted all across the world, and it is clear that we will ensure a great benefit for Lithuania by selling the shares at the price agreed in 2006, instead of what it is now," Kubilius said.

The sale is expected to generate around $ 284 mm (EUR 216 mm) for the state at a time when Kubilius' government is implementing wide-ranging spending cuts and trying to increase efficiency in the public sector. Kubilius confirmed a $ 1.5-bn (EUR 1.14 bn) economic stimulus package aimed at turning around the flagging Lithuanian economy.
Some analysts expect Lithuania to follow neighbouring Latvia and turn to the International Monetary Fund (IMF) for further assistance, a move which Kubilius has refused to rule out.

Source / Deutsche Presse-Agentur GmbH
Alexander's Commentary

Change of face - change of phase

In the period of July 20 till August 3, 2015, Alexander will be out of the office and the site will not or only irreg

read more ...
« July 2020 »
July
MoTuWeThFrSaSu
1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31

Register to announce Your Event

View All Events