PKN Orlen EGM approves Lotos merger

Marcin Bednarski/PAP

An extraordinary general meeting (EGM) of Poland's dominant oil and gas group, PKN Orlen, has given the go-ahead for a merger with domestic rival Lotos Group.

The motion was passed by 300,532,564 votes in favour, representing 98.3 percent of those present at the meeting.

The shareholders agreed on the share swap parity of 1:1.075, and to a spin-off of Lotos assets and the sale of fuel bases in Gdansk, Gutkow, Szczecin and Boleslawiec, through an in-kind contribution to cover shares in the increased share capital of Lotos's storage and distribution arm, Lotos Terminale.

On Wednesday, the merger was approved by a Lotos EGM.

In June, the European Commission gave the final green light to the merger, while the Polish government approved it on Tuesday.

As a result of the transaction, the State Treasury's share in the new company will increase to 35 percent. The takeover will be an important element of the Polish oil and gas sector's consolidation, involving PKN Orlen, Lotos and natural gas company PGNiG. It would make PKN Orlen the largest multi-energy company in the Central and Eastern European region.