Bogdanka's joining Enea Group will bring benefits to the mine and the Lubelskie region

The guarantee of receipt by Enea's power plants of the coal from Lublin, strengthening of the position of one of the most important employers in the Lubelskie region, joint investments and engagement in the life of local societies - this are just some of the benefits which LW Bogdanka's incorporation under Enea Group brings. Bogdanka will be soon financially consolidated with the Group and the plans for the further integration of the mine with the energy concern will be ready.

The plans for the next months were announced during the common conference in Lublin by the representatives of Enea and Bogdanka.

- We know that Bogdanka is a significant partner for the community in the Lubelskie province and an important employer in the region. We are preparing a plan of the mine's integration with Enea Group. At the same time, we are commencing the financial consolidation - said Dalida Gepfert, vice-president of Enea for financial affairs, chairman of LW Bogdanks'a Supervisory Board.

The so called quick wins will be precisely identified in the near future, which is those positive effects of the amalgamation, which the extended Group may use almost immediately. Additionally, long-term initiatives increasing its value will be prepared. The companies mention e.g. coal transport and purchase costs optimisation among the possible operating synergies.

- Bogdanka is the most efficient coal company in Poland and we want to strengthen its position further. However, we can see the potential for further efficiency improvement – the chairman of Bogdanka's Supervisory Board added.

Enea's representatives in the Supervisory Board work for a symbolic penny. Additionally, the company, after the acquisition of the mine, reduced the Board's composition from eight to six members. These decisions allowed for a significant reduction of the Board's operating costs.

- Enea is an efficiently managed enterprise. The company applies modern corporate governance. We want to introduce the same good practices in Bogdanka. Entry into Enea Group is the best possible scenario of the mine's development and strengthening of its position in the more and more difficult environment - noticed Paweł Orlof, vice-president of Enea for corporate affairs, deputy chairman of Bogdanka's Supervisory Board.

Enea's representatives emphasised that the takeover of the mine would allow for a long-term guarantee of coal for the needs of electricity generation at competitive prices. The coal mined in the Lubelskie region is technologically adjusted to firing in Kozienice Power Plant owned by Enea.

Enea wants to strengthen the position of the mine which is one of the largest employers in Lubelskie region. At the same time, Bogdanka's entry into Enea Group will change nothing as regards the tax income of local governments. On Monday, during the first meeting Bogdanka's new Supervisory Board selected the chairmen and nominated the new Management Board of the company.

Zbogniew Stopa, connected for many years with the mine, remained the president and Waldemar Bernaciak will still be the vice-president for trade and logistics. Enea strengthened LWB's Management Board with two managers, proved in the Group's companies. The new people in the four-person management board will be Jakub Stęchły, who became the vice-president for purchases and investment and Piotr Janicki will be the vice-president for economic and financial affairs. The Management Board was appointed for a three years' term.

- Entering Enea Group we are opening a new chapter in the mine's history. An amalgamation with an energy concern will guarantee Bogdanks a positive and stable future at the time when the situation on the coal market is difficult - said Zbigniew Stopa, the president of LW Bogdanka.

In October 2015 Bogdanka became a part of Enea Group which thus becomes a modern fuel and energy concern this way. Takeover of the controlling interest in the coal company was a result of the successful tender offer for shares. Enea announced it on 14 September and on 29 October the transaction was settled. In the tender offer the Group acquired 64.57% of the shares for which it paid over PLN 1.48 billion. Enea holds a total of 66% of the mine's shares and is the majority shareholder of Bogdanka.

The takeover of Bogdanka allowed Enea to extend the chain of values with the area of mining, increase its competitiveness and guarantee a growth in the company's goodwill e.g. thanks to synergies resulting from fuel purchase cost optimisation.

Enea is a renown seller, distributor and producer of electricity and heat energy. Lubelski Węgiel Bogdanka, on the other hand, is the most efficient mining company in Poland. Enea is the key recipient of the mine's products, and Bogdanka is the largest fuel supplier for the core coal-based sources of power generation which Enea holds in Kozienice Power Plant. The both companies are listed in the Warsaw Stock Exchange.