Current Report No.: 11/2016
Current Report No.: 11/2016
Date of preparation: 04.03.2016
Short name of issuer: Enea S.A.
Subject: The notification about the intention to disclose the results of allocation of the acquisition price of the controlling interest in Lubelski Węgiel Bogdanka S.A. in 2015 consolidated financial statements
Legal basis: Article 56 item 1(1) of the Act on Offerings - confidential information
Content of report:
The Management Board of Enea S.A. (Issuer, Company) reports that in relation to the conclusion of works related to the allocation of the acquisition price of the controlling interest of 64.57% of shares of Lubelski Wegiel Bogdanka S.A. (LWB) by Enea S.A., in accordance with IFRS 3, on 4 March 2016 a decision was made on performing the recognised asset carrying value write-downs.
As a result of the allocation of the acquisition price of LWB the goodwill item was recognised in the value of PLN 50.2 mln which was attached to the potential possibility of LWB's obtaining a mining licence for new coal deposits. However, taking into account the general situation on the coal market and the fact that LWB's present recoverable reserve enables the exploitation of the existing coal deposit until 2039, the Management Board of Enea S.A. decided to write off the company's total goodwill established as a result of the transaction.
LWB's acquisition price settlement resulted in the recognition of the assets due to non-market terms of the agreement for coal acquisition concluded between Enea Wytwarzanie Sp. z o.o. and LWB. The Agreement foresees a formula at which the coal price is calculated if next price negotiations do not result in the final determination of the price for the next settlement period. The price calculated based on the said Agreement significantly diverges from the existing market conditions and therefore the resultant assets totalling to PLN 94 mln calculated according to IFRS 3, was applied to the other operating expenses of 2015.
At the same time, the Issuer points out that the above mentioned operation is only of an accounting nature and has no impact on the liquidity situation of the Company and its Capital Group. The Company reserves that the values presented above are only estimates and may change. The final results of the acquisition price allocation will be presented in the financial statements of Enea Capital Group for 2015, which are planned for publication on 21 March 2016.
