GDANSK, April 1 (Reuters) - Polish state-owned refiner Orlen PKN.WA said on Wednesday it has signed a preliminary deal with Polish state-controlled chemical group Grupa Azoty ATTP.WA under which it will acquire all the remaining shares in Grupa Azoty Polyolefins $(GAP)$.
The transaction involves the acquisition of shares in GAP and the provision by Orlen of the financing required to complete GAP's restructuring, with a total value of 1.35 billion zlotys ($364.23 million).
"The transaction is broadly in line with market expectations - Orlen has long been seen as the natural candidate to take over and stabilize the troubled Polyolefins project," Erste Group analyst Cezary Bernatek said in a note to clients.
"We would expect a rather neutral initial market reaction...Overall, the deal should be seen as risk clean-up rather than a new growth catalyst," he added.
Orlen currently holds a 17.3% stake in GAP, which will rise to 100% upon completion of the transaction.
"The resolution of the "Polimery Police" project is a turning point for Grupa Azoty and the solution to the first of the most important investment and financial problems," Grupa Azoty CEO Marcin Celejewski said in a statement.
"This transaction is a catalyst for the implementation of our new strategy – focusing on the fertilizer foundation and maximizing synergies within the group," he added.
Orlen said in a statement that completion of the transaction is planned for the third quarter.
As part of the transaction, a settlement agreement is also being concluded between the GAP and Hyundai Engineering, with Orlen acting as guarantor, concerning mutual claims relating to the performance of the deal for implementation of the flagship polymer project.
($1 = 3.7064 zlotys)
(Reporting by Adrianna Ebert; Editing by Matt Scuffham)
((Adrianna.Ebert@thomsonreuters.com; +48 58 769 65 88;))
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