Enea close to the takeover of Połaniec Power Plant - all the conditions precedent have been satisfied

Enea received the information on the satisfaction of the last of the four conditions precedent of the conditional agreement on the acquisition from ENGIE International Holdings B.V. of 100 per cent of shares in ENGIE Energia Polska, the owner of Połaniec Power Plant. The fulfilment of the conditions opens the path to the transaction closing. The investment in Połaniec Power Plant is in line with Enea Capital Group’s new Development Strategy.
On Tuesday Enea received the information on the waiver by the President of the Agricultural Property Agency of the pre-emptive right to buy agricultural land being the subject of the transaction. It was the last of the four conditions precedent of the conditional agreement concluded on 23 December 2016 for the acquisition of 100 per cent of shares in ENGIE Energia Polska.

Commencement of the last stage of the transaction closing depended on the satisfaction of all four conditions precedent. Except for the consent of the President of the Agricultural Property Agency they included: obtaining consent of the Minister of Energy (in accordance with the Act on Control over Certain Investments), obtaining consent of the President of the Office of Competition and Consumer Protection for the concentration and conversion of ENGIE Energia Polska’s debt towards ENGIE group entities to the equity in ENGIE Energia Polska.

- We are one step away from closing the transaction and taking over Połaniec Power Plant. Due to the full engagement of Enea and ENGIE teams we were able to quickly prepare to the satisfaction of four conditions precedent foreseen in the agreement. A major value added of incorporating Połaniec Power Plant under Enea will be synergies which may be effected due to the cooperation of the segment of generation in Eena and the segment of mining. Enea is continuously preparing so that the date of talking over Połaniec Power Plant by our Group does not significantly diverge from a normal working day in Połaniec – underlined Mirosław Kowalik, president of Enea

- We are facing a very intense period leading to the closing of the transaction, which is the acquisition of 100 per cent of shares in ENGIE Energia Polska. I count that the process, as till now, will be efficient and on the schedule, thanks to which we will soon be able to announce that we have become the owner of one of the most efficient system power plants in Poland – said Mikołaj Franzkowiak, vice-president of Enea for financial affairs. 

The investment in Połaniec Power Plant is in line with Enea Capital Group’s new Development Strategy. The takeover will strengthen Enea’s positions as one of the leading electricity generators in Poland and will strengthen the Group’s position on the market. The investment will also positively affect a growth in Enea Group’s revenue and EBITDA.

Połaniec Power Plant is valuable assets for Enea obtained at an optimum price. Enea Group takes over a modernised company with no debts. The Investment will contribute to the establishment of an energy generation area which is based on its own resource, is cost- and operation-efficient. Kozienice-Bogdanka-Połaniec generation and mining area, located in south-east Poland, will bring numerous synergies profitable for the Group. It will also strengthen the Polish energy security and reliability of energy supplies to Enea’s Customers and will bring positive effects to the regional community.

Połaniec Power Plant is one of the most efficient electricity generators in Poland which has implemented an over PLN 1 billion worth of an intensive modernisation programme during recent years. The modernisations extended the power plant’s operation by over 20 years, increasing the efficiency of energy generation and adjusting the generating equipment to the environmental standards in force, including to the requirements of IED Directive. An important part of the power plant is a modern biomass unit, 200 MW capacity, which generates “green energy” based on biomass coming from local suppliers.

ENGIE Energia Polska is currently the fifth largest producer of electricity in Poland. Together with ca. 1.9 GW Połaniec power plant the company accounts for 5 per cent of electricity generation in Poland.

Enea Group is one of the leaders of the Polish power market. It manages the complete chain of values: from coal in the mine to a socket at Customer’s home. It is responsible for reliable supplies of energy to 2.5 mln Customers.