Crude oil companies Unipetrol and Deza have signed an agreement on the out-of-court settlement of their disputes concerning the transfer of Unipetrol's shares in companies Agrobohemie and Synthesia.

According to the settlement, Deza shall withdraw from all its legal actions filed against Unipetrol and will not seek a payment of any contractual penalties and damages by Unipetrol.

At the same time, Unipetrol and Deza agreed on the sale of shares of Agrobohemie and Synthesia owned by Unipetrol to Deza for the purchase price reflecting the fair market value of the shares, provided that the purchase price shall be determined by the reputable appraiser selected by both Unipetrol and Deza.

For Unipetrol, the settlement agreement means the possibility to sell shares in Agrobohemie and Synthesia at fair market conditions, elimination of potential legal defects of sale of shares of Agrobohemie and Synthesia and future co-operation with companies controlled by Deza on sale and purchase of raw materials.

Francois Vleugels, CEO of Unipetrol, said: I consider the settlement agreement to be another important step in our efforts to settle open issues of the past and to execute successfully our long-term strategy. Not being part of our core business and with a limited influence on the companies’ management, we believe that Agrobohemie and Synthesia represented a rather low potential for our future growth, and will have a much better future with Deza, while the cash we obtain from the transaction will enable us to further restructure the debt financing.