Friday, November 28th 2014, is the last day for accepting subscriptions for new shares of Grupa LOTOS S.A. (“Grupa LOTOS” or the “Company”) placed in the exercise of pre-emptive rights, and for accepting additional subscriptions.
General
Friday, November 28th 2014, is the last day for accepting subscriptions for new shares of Grupa LOTOS S.A. (“Grupa LOTOS” or the “Company”) placed in the exercise of pre-emptive rights, and for accepting additional subscriptions.
The public offering of Grupa LOTOS shares is entering its final phase. It is only today that investors can place subscriptions for new shares of Grupa LOTOS in the exercise of their pre-emptive rights and/or place additional subscription orders.
Issue proceeds will be applied towards the financing of the EFRA Project (i.e. construction of a delayed coking unit with auxiliary infrastructure) and towards the development of the B4/B6 gas fields in the Baltic Sea. The issue price has been set at PLN 18.10 per share, taking the gross value of the offering to PLN 995.5m. On November 20th 2014, the State Treasury, LOTOS majority shareholder, announced that it would subscribe for all new Grupa LOTOS shares it is entitled to. This subscription, estimated at ca. PLN 529.5m, will allow the State Treasury to maintain its current interest (53.19%) in the share capital and total voting rights at the LOTOS General Meeting.
Once completed, the EFRA Project will enable the Company to significantly improve distillate yields. As a result, the share of heavy products in total output will be reduced, the LOTOS Group will focus on manufacturing middle distillates, and coke will be produced as the last fraction, all of which is expected to drive the LOTOS Group’s refining margin up by ca. USD 2 per barrel.
The Company estimates at ca. PLN 2.34bn the total cost of the EFRA project, including costs to service the project’s financing during the construction stage and costs to maintain reserve deposits required by the banks. The issue proceeds are expected to contribute PLN 530m−650m to the project’s financing. The EFRA project is to be completed in the first quarter of 2018.
The best estimate (2C) of the gas reserves in the B4/B6 fields is ca. 4.3bn m3. The project provides for the development of the fields, and its execution may help improve Poland’s energy security.
Grupa LOTOS’s estimated total expenditure on the development of the gas fields will be PLN 800m, with the Group’s interest in the project amounting to 51%. The Company intends to apply PLN 350m−470m from the issue proceeds towards co-financing of the project. Production from the B4/B6 fields is planned to commence at the turn of 2017.
Schedule of the Public Offering
|
DATE |
ACTIVITY |
|
November 28th 2014 |
Last day for accepting subscription orders placed in the exercise of pre-emptive rights and for accepting additional subscription orders |
|
December 9th 2014 |
Allotment of shares acquired in the exercise of pre-emptive rights and under additional subscription orders |
|
December 10th−11th 2014 |
Acceptance of subscription orders for any offered shares not acquired in the exercise of pre-emptive rights and not covered by additional subscription orders placed by entities which have responded to the invitation of the Joint Offering Brokers acting on behalf of and in consultation with the Company |
|
December 12th 2014 |
Placement of subscription orders, if any, by the underwriters in the performance of their obligations under the Underwriting Agreement and allotment of offered shares to entities who place subscription orders in response to the invitation of Joint Offering Brokers acting on behalf of and in consultation with the Company, and to the underwriters |
|
December 19th 2014 |
Listing of allotment certificates on the WSE |
Legal disclaimer:
This material is not for release, publication or distribution, directly or indirectly, in the United States, Australia, Canada, and Japan.
This material has been prepared for promotional purposes only, it is not an offer or a solicitation of any offer, and it is not to be relied upon in making any decisions on investment in the securities issued by Grupa LOTOS S.A. (the “Company”). The prospectus prepared in connection with the rights issue and public offering of the Company shares (“Shares”) (“Prospectus”) was approved by the Polish Financial Supervision Authority on November 7th 2014 and is the only legally binding document containing information on the Company and the public offering of its Shares in Poland. The Prospectus has been made public in electronic form on the Company’s website (www.lotos.pl) and, for information purposes, on the website of Powszechna Kasa Oszczędności Banku Polskiego S.A. Oddział − Dom Maklerski PKO Banku Polskiego w Warszawie (www.dm.pkobp.pl).
This material is not a recommendation within the meaning of the Minister of Finance’s Regulation on information which constitutes recommendations concerning financial instruments or their issuers, dated October 19th 2005.
This material (and any information presented herein) does not contain or constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States of America, Australia, Canada, Japan or in any other jurisdiction. The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended (“US Securities Act”), and may not be offered or sold in the United States of America unless they are registered, or exempt from the registration requirements, under the US Securities Act. The securities will not be offered to the public in the United States.
The Company, its subsidiaries and other related entities disclaim any liability for any loss or damage arising from the use of this material, any part hereof or any information contained herein, or for any loss or damage arising otherwise in connection with this material.
Société Générale, Powszechna Kasa Oszczędności Bank Polski S.A. – Dom Maklerski PKO Banku Polskiego of Warsaw (Branch), BZ WBK, ING Securities and Unicredit act in connection with the Offering for the sole benefit of the Company and will not treat any other person (whether or not a recipient of this document) as their client in connection with the Offering, and will not be held responsible towards any other entity for providing protection to their clients or for any advice in connection with the Offering.
Communications Office, Grupa LOTOS
S.A., ul. Elbląska 135, 80-718 Gdańsk, Poland,
tel. (+48) 58 308 87 31, (+48) 58 308 83 88, e-mail: media@grupalotos.pl
