Current Report No.: 29/2015
Current Report No.: 29/2015
Date of preparation: 21.08.2015
Short name of issuer: Enea S.A.
Legal basis: Article 56 item 1(2) of the Act on Offerings - current and periodic information
Subject: Termination notice by Enea Wytwarzanie sp. z o.o. of the Multiannual Agreement for fuel coal supplies concluded on 4 March 2010
Content of report:
The Management Board of Enea S.A. ("Issuer") informs that on 21 August 2015, the Management Board of Enea Wytwarzanie sp. z o.o., ("Enea Wytwarzanie"), being the Issuer's subsidiary, sent a notice to Lubelski Węgiel "Bogdanka" S.A. ("LWB") relating to the termination of the Multiannual Agreement for fuel coal supplies concluded on 4 March 2010 between Elektrownia Kozienice S.A. (currently Enea Wytwarzanie sp. z o.o.) and LWB, on the conclusion of which the Issuer informed in the current report No. 17/2010 of 5 March 2010 and in subsequent reports updating the related information ("Multiannual Agreement") at a 2-years' notice period which commences on 1 January 2016.
Pursuant to Article 61 § 1 of the Civil Code, the termination notice of the Multiannual Agreement by Enea Wytwarzanie shall be deemed submitted on its receipt by LWB or when LWB is able to read the notice.
As a consequence of the termination notice of the Multiannual Agreement submitted by Enea Wytwarzanie, the agreement shall be terminated as of 1 January 2018.
The subject of the Multiannual Agreement was fuel coal supplies from LWB to Enea Wytwarzanie in the period from 4 March 2010 to 31 December 2025.
The Multiannual Agreement was terminated by Enea Wytwarzanie due to the lack of agreement between the parties as regards coal prices for 2016 within the term foreseen in the Multiannual Agreement, and also due to the Multiannual Agreement's terms, being unfavourable in Enea Wywtarzanie's opinion, which do not reflect the current situation of the fuel coal market.
Termination of the Multiannual Agreement should contribute to a long-term enhancement of Enea Wytwarzanie's competitiveness, and thus an improvement in the Issuer's and its capital group's competitiveness, due to the possibility of obtaining fuel coal for the Group's generating assets on more favourable conditions than resulted from the terminated Multiannual Agreement.
The Multiannual Agreement was recognised significant since its value exceeds 10% of the Issuer's equity.
Detailed legal basis: § 5 item 1(5) of the Regulation of the Minister of Finance of 19 February 2009 on current and periodic information published by issuers of securities [...].
