Poland's Orlen sold Lotos assets for at least $1.24 bln below value -audit office (updated)

Unimot SA

05/02/2024 12:39

(Adds details in paragraphs 2-7)
       WARSAW, Feb 5 (Reuters) - Polish oil company Orlen
 PKN.WA  sold assets of smaller peer Lotos for at least 5
billion zlotys ($1.24 billion) below their estimated value,
Poland's Supreme Audit Office (NIK) said on Monday.
    To enable a takeover, Orlen in 2022 agreed to sell some
Lotos assets to companies including Saudi Aramco  2223.SE  and
Hungary's MOL  MOLB.BU  to fulfill European Union antitrust
rulings and meet conditions for taking over the Gdansk-based
firm.
    Orlen's purchase of Lotos was part of a plan by the then
ruling Law and Justice (PiS) party to increase control over the
economy and create 'national champions'. 
    "NIK...draws attention to the abnormally low price for the
sale of Grupa Lotos' assets - at least 5 billion zlotys below
the estimated value," the office said in a statement.
    It also said that the sale of Lotos' Gdansk refinery to
Saudi Aramco threatened Poland's energy security.
    Following a change of government, prosecutors launched two
probes into Orlen in January, one concerning alleged malpractice
resulting in losses during its takeover of Lotos, and another
into claims that it artificially lowered petrol prices before a
2023 election to help PiS.


($1 = 4.0286 zlotys)

 (Reporting by Marek Strzelecki, Pawel Florkiewicz, Alan
Charlish; Editing by Kirsten Donovan)
 ((alan.charlish@thomsonreuters.com;))