Wood & Co. - koment k odkupu Uni - prodej

Conclusion:
1) After July 25, PKN may not exercise it voting rights on the 63% of Unipetrol it already owns. This wouldn’t be able to vote its shares until it launched a valid tender offer. PKN will ask for extension of July 25 deadline, but it is not given that SEC has to oblige.

2) PKN will have to improve the price offered, however PKN clearly indicated its strategy to offer as low as possible. We think that the expert valuation will have to be at least 6M VWAP (CZK 119-125 per share) to be approvable for the SEC.

Recommendation: We still believe that the approved bid will come below the current market price of CZK 153, thus recommend investors to sell the stock to the market and not to tender.