UPDATE 3-Unipetrol sells Spolana for CZK 640 mln, shares dip

(Adds quotes from news conference, analyst's comment)

By Marek Petrus and Jan Korselt

PRAGUE, Oct 27 (Reuters) - Czech oil group Unipetrol <UNPEsp.PR> announced on Friday the sale of chemical plant Spolana for a lower than expected 640.4 million crowns ($29 million), disappointing investors who sent the stock price down.

The Czech group sold 82 percent of Spolana to Poland's Anwil, a unit of Unipetrol's majority owner, Polish oil refiner PKN Orlen <PKNA.WA>, and said it would incur a consolidated loss of 350 million crowns as a result.

Unipetrol's shares were down 1 percent at 203.50 crowns by 1200 GMT underperforming a 0.5 percent drop in the blue-chip Prague stock market index PX <.PX>.

The price for Spolana came below some analysts' expectations that the stake was worth about 1.1 billion crowns, but the transaction also included the assumption of Spolana's 660 million crowns in debt by Anwil.

"The terms of the agreement at first glance seem fair, but the market may take the news negatively especially regarding the loss they would generate from the transaction," said Bram Buring, an equity analyst at Wood & Company in Prague.

The sale was part of Unipetrol's drive to divest non-core assets and keep the focus on petrochemical, oil refinery and fuel retailing businesses.

Unipetrol is also negotiating a sale of synthetic rubber unit Kaucuk to another Polish firm, Dwory, which should be completed by the end of the year.

"From Unipetrol's point of view ... Spolana is not a core business," investment chief Dariusz Marzec told a news conference. "Unipetrol can focus on its core business and optimise the cash flow."

Unipetrol said it wanted to use the cash from the Spolana sale for business development and debt restructuring.

Chief Executive Francois Vleugels told Reuters in an interview on Wednesday that revenue from divestments could be used for acquisitions or investments but a special dividend also remained an option.

He also said 2006 operating profit was expected to remain flat this year from 5.27 billion crowns last year.

The value of Spolana's shares in the Unipetrol books was 986 million crowns, said PKN, which owns 63 percent of the Czech company.

"The (Spolana sale) price is not very big, but even if they were paid twice as much, it has a marginal impact on Unipetrol," said Barbara Seidlova, equity analyst at ING in London. (Additional reporting by Jan Korselt) ((Editing by Alan Crosby/Greg Mahlich; Reuters Messaging: rm://marek.petrus.reuters.com@reuters.net; e-mail: prague.newsroom@reuters.com or marek.petrus@reuters.com; Tel: +420 224 190 477)) ($1=22.38 Czech Crown)

Keywords: CHEMICALS CZECH UNIPETROL