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Enea intends to take over the control over LW Bogdanka

The energy group announced a tender offer for the shares of the mine from Lublin. It offered PLN 67.39 per share to the existing shareholders. Thus, Enea intends to take over the control over its existing coal supplier. It will ensure reliability of fuel supplies at a competitive price within a modern energy and fuel group.

Enea's Management Board's decision is an element of the implementation of the final scenario of the Group's development which foresees that the superior idea of the company's operations is building value for shareholders and guaranteeing safe energy supplies to customers. It means the development in all the links of the energy chain of value which will be supplemented by the bituminous coal mining area. Enea has already updated its strategy within this scope.

- We are responsible for reliable supplies of cheap energy to 2.5 mln our customers. A direct impact on the whole process of production and power delivery from coal at a mine to a socket at home, will strengthen our competitiveness - emphasises Krzysztof Zamasz, president of Enea. - Announcing the tender offer relating to Bogdanka we are implementing our "crocodile strategy". Due to the transaction, we are enhancing the Group's value and guaranteeing supplies of coal at advantageous prices he adds.

Before Enea decided to engage directly in the mining area, it analysed various business models. It was decided that extending the value chain with the area of obtaining coal fuel will guarantee increased competitiveness and higher goodwill.

- We build a modern fuel and energy group. The decision on the inclusion of the mining area and Bogdanka mine into Enea was taken after a profound business analysis of all its aspects. If the transaction is concluded, Bogdanka will become an important part of one of the largest and most dynamic Polish companies explains Krzysztof Zamasz, president of Enea.

Subscriptions will commence on 2 October and will last 14 days pursuant to the law. A condition for the transaction to succeed is also obtaining an approval from the Office for Competition and Consumer Protection.

- This is a business opportunity for the existing owners of Bogdanka. We are an investor who may offer the most advantageous price for the existing shareholders with a bonus from the current share price. Obviously, each of them will decide if it is worth accepting the offer. We treat the acquisition of Bogdanka as one of the options of securing fuel supplies, but not the only one. We want the tender offer to succeed, but not at all costs emphasises Dalida Gepfert, vice-president of Enea.    

Lubelski Węgiel Bogdanka is the most efficient mining enterprise in Poland. The company's shares have been listed on the Warsaw Stock Exchange since June 2009. Enea's Kozienice Power Plant is the key customer for the mine's products and Bogdanka is the largest supplier of fuel for the concern. Enea is a seller, distributor and producer of electricity and heat energy. It has ca. 2.5 mln customers, generates ca. 13 per cent of the power sold in Poland, is responsible for reliable supplies of energy to the citizens of the north-western part of Poland. Enea's shares were first listed on WSE in November 2008.

Having in mind the diverse and international nature of Enea SA's shareholding, and also the provisions of the Best Practices of WSE Listed Companies, Enea SA guarantees the availability of its website also in English. In case of any interpretation doubts and discrepancies between the Polish and English versions, the Polish version shall prevail.