Current Report No.: 22/2020
Current Report No.: 22/2020
Date of Preparation: 3 June 2020
Issuer's Abbreviated Name: ENEA S.A.
Subject: Signing of a letter of intent regarding a potential investment in offshore wind farm projects
Legal Basis: Article 17 Section 1 of the Market Abuse Regulation - confidential information
Body of the report:
The Management Board of ENEA S.A. ("Company", "Issuer") hereby reports that on 3 June 2020 it signed a letter of intent ("Letter of Intent") with Iberdrola Eólica Marina S.A. ("Iberdrola") regarding the Issuer's potential investment in offshore wind farm projects to be developed in the Polish exclusive economic zone of the Baltic Sea. In connection with the signing of the Letter of Intent, the parties will enter into exclusive negotiations aimed at assessing the feasibility of execution of a joint capital expenditure project by the Company and Iberdrola in the said wind farm projects with a total capacity of up to approx. 3.3 GW and their shared preparation, construction and operation.
The degree of the Issuer's involvement in these offshore wind farm projects will be determined at a later stage of the negotiations, yet at the time of signing of the Letter of Intent, the parties assume a minority shareholding on the part of the Issuer.
In accordance with the Letter of Intent, the parties expect to develop a term sheet to define key parameters of the potential transaction.
The provisions of the Letter of Intent are of a non-binding nature, except for certain specific clauses, such as those regarding the exclusivity of negotiations and the confidentiality requirements.
The Letter of Intent contains no provisions imposing any contractual penalties. Any liability of the parties related to the performance of the Letter of Intent will be based on the generally applicable laws.
At the same time, the Issuer considers it appropriate to declare that the execution of the said project will constitute a significant step in the pursuit of the Issuer's strategic objective involving the attainment of the share of Renewable Energy Sources in its electricity generation mix at a level of 22% by 2025 and 33% in 2030.
