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Czech Rep: Court Rejects Agrofert in Favour of PKN Orlen - Updated

Czech Rep: Court Rejects Agrofert in Favour of PKN Orlen - Updated

 The Agrofert group of Czech Finance Minister Andrej Babis has lost its claim with PKN Orlen.


Agrofert was claiming damages for an alleged breach of contracts in the privatisation of petrochemical holding Unipetrol. Agrofert had filed four lawsuits against PKN Orlen in connection with Unipetrol´s privatisation but succeeded only with one of them. In 2009, PKN Orlen was ordered to pay a contractual fine worth some Kc2.45bn.

The then minority Social Democrats (CSSD) government of now President MIlos Zeman originally in 2001 offered the state share in Unipetrol to Agrofert. The price at Kc11.7bn seemed to be too high to Babis and when the state did not want to cut the price, the deal did not materialise.

PKN Orlen in the end bought the stake from the Czech state for Kc14.7bn in 2004. It closely cooperated with Agrofert in the privatisation and for its help reportedly promised to sell to Agrofert controlling stakes in Unipetrol’s subsidiaries Kacuk, Agrobohemie, Aliachem, Paramo and Chemopetrol for a favourable price.  PKN Orlen did not sell the stakes to Agrofert after the privatisation.  PKN Orlen said the court verdict concerning Agrofert was "in harmony with the law and in the company´s best interest.”   PetrolWorld 130415  Source: ČTK

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Prague, April 2014 – BENZINA has launched a brand new website at benzina.cz with a completely revised visual appearance. BENZINA also extended the quantity of published information about the company, its products and services. The website is available in both Czech and English.

Last modified onWednesday, 15 April 2015 08:08
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