02 May 2013 10:35 [Source: ICIS news]
LONDON (ICIS)--The Court of Arbitration in Paris has dismissed a claim for $250m (€190m) with interest and costs made by Poland’s PKN Orlen oil and petrochemicals group against Yukos International over the sale of Lithuanian refiner Orlen Lietuva (formerly Mazeikiu Nafta), Orlen said on Thursday.
Orlen claimed that Yukos International – headquarted in the Netherlands, the company took over European assets of the defunct Yukos, once Russia's largest energy company – misrepresented the condition of Orlen Lietuva during a transaction that saw the Polish group acquire the refiner from Yukos and the Lithuanian government for $2.5bn in 2006.
“Although this is not good news for PKN Orlen, we believe that probably no one expected a positive ruling for the $250m claim and no one was pricing in Orlen winning this amount,” Robert Rethy, an analyst at WOOD & Company investment bank, said in a note to investors.
“In this sense, the news is neutral and it relates to a rather old part of Orlen’s not very successful mergers and acquisitions history,” he added.
When acquiring Orlen Lietuva, which operates the only refinery in the Baltic countries, Orlen had ambitions to turn its main site into an oil and petrochemical complex, but these plans have been mothballed indefinitely.
($1 = €0.76)
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