Shell agrees to sell its remaining stake in Ceska Rafinerska

Shell has agreed to sell its 16.3% stake in Czech refiner Ceska Rafinerska to the company’s existing majority owner Unipetrol for USD27.2 million.
Unipetrol already holds a 51.22% stake in Ceska Rafinerska, which operates the country’s two major refineries — the 68,000 barrel per day (bpd) Kralupy refinery and the 110,000 bpd Litvinov refinery.
Following expected completion of the sale in early 2014, Unipetrol will control 67.56% of Ceska’s share capital, it said. Italy’s Eni owns the remaining 32.44% in the refiner.
Relations between the Ceska stakeholders have been strained in recent years, with Unipetrol failing to reach agreement with Eni and Shell in 2011 over an operating plan and the naming of a new general director.
The existing shareholder agreement calls for 67.5% of shareholder votes to be agreed on for any strategic changes, meaning Unipetrol will now have greater control of Ceska’s operations.
Noting that its ownership will rise above the 67.5% threshold, Unipetrol said the deal will open the door to “significant” improvements in Ceska’s management and costs savings. It will also improve feedstock security for its petrochemical business, Unipetrol CEO Marek Switajewski said.
Unipetrol said its increased stake in Ceska will also support its goal of expanding its retail fuels business to a 20% market share in 2017.
“I am confident that the transaction further confirms our main strategic objective to ensure Unipetrol’s long-term growth. It also strengthens our long-term presence on the Czech market,” Switajewski said.
Shell said the sale forms part of a move to reduce its downstream fuels footprint in Europe to concentrate on “businesses where it can be most competitive.” However, the company said that its downstream retail, lubricants and aviation businesses in the Czech Republic are not affected by the transaction.
“Shell has established long-term supply agreements to serve Shell’s retained businesses and to ensure that we will be able to continue serving our customers with high quality fuels and to the highest standards,” the company said.