Czech Unipetrol, Deza reach settlement in assets row

...over stakes in two other chemicals companies.

Under the deal, Unipetrol will sell its 50 percent stake in Agrobohemie and its 38.8 percent stake in Synthesia to Deza, a part of the closely-held Agrofert group, at market prices to be determined by an expert.

Under deals done in 2000 and 2001, Deza had options to buy the stakes. But Unipetrol, after PKN Orlen bought a majority in the company in 2004, said that the contracts had legal shortcomings, and refused to heed them.

Deza has since been seeking compensation in the courts.

"Agrobohemie and Synthesia, which were not our core business and on whose management we had only a limited influence, did not have great potential for our future development," Unipetrol Chief Executive Francois Vleugels said in a statement.

"Money we will gain from the transaction will allow us to further restructure our debt financing," he added.

Auditors KPMG had said Unipetrol could lose up to 817 million crowns ($43.8 million) from the legal battle with Deza. Unipetrol has not created any provisions in that respect.

[PRAGUE/Reuters/Finance.cz]