Poland increases stake in state-controlled PKN Orlen

By bne IntelliNews January 20, 2017

PERN, the Polish state-owned company managing the country’s network of crude oil pipelines, has bought a 4.9% stake in state-controlled oil and gas group PKN Orlen, the ministry of energy announced on January 20.

PERN paid PLN1.5bn (€340mn) for almost 21mn shares in PKN Orlen. The transaction, the ministry claims, serves the current government’s policy of increasing the country's energy security. 

The purchase will enable “fuller synergies thanks to deeper cooperation between the two firms, as, thanks to the purchase, PERN will gain better access to information on PKN Orlen’s key projects as well as some influence on how those projects are carried out, the ministry said. PERN will also benefit from dividend payouts.

Since taking power in late 2015, the Law and Justice government has pushed a policy to increase the state's role in several sectors, including energy. Warsaw has also pushed a number of power firms to invest in the state coal mining sector, while granting itself the right of first refusal on the sale of any "strategic" energy companies.

 

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