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Reported by PGE Polska Grupa Energetyczna on 24 May 2018

PGE Group announces tender offer for 100% of Polenergia shares

  • PGE Polska Grupa Energetyczna is interested in purchasing all of the shares of WSE-listed energy group Polenergia.
  • The acquisition of this vertically integrated enterprise is aligned with PGE Group’s business strategy as it presents an opportunity for development and growth in all of its operating segments.
  • Polenergia generates electricity, including from renewable energy sources, produces heat in an ecological cogeneration process based on gas fuel as well as distributes and trades electricity.
  • The acquisition of Polenergia’s assets would lead to a reduction in PGE Group’s average emissions, mainly due to expansion of its wind capacity portfolio.
  • Polenergia’s on-going development projects complement the activities already being undertaken by PGE Group. These include electromobility, energy storage and photovoltaics.

(Courtesy of pexels.com)

In accordance with PGE Group’s business strategy, its mission is to provide security and development through supply reliability, technical excellence, modern services and partner relations. Building value for shareholders and playing a key role in ensuring the country’s energy security are the overarching objectives that PGE Group is consistently pursuing.

Polenergia’s assets are a good fit with PGE’s business profile and they correspond to the Group’s operating segments, thereby offering potential to enhance its financial results. Polenergia’s diverse and multi-directional business may also contribute to reducing PGE Group’s operating risk.

The acquisition of Polenergia’s assets would allow PGE Group to increase electricity and heat generation, grow its share in the distribution segment and expand its wind capacity portfolio.

Polenergia is a diversified energy group that, aside from its generation assets – both conventional and based on renewable energy sources – distribution networks and an offshore wind farm project, is also involved in numerous development projects. These projects, which include electromobility, energy storage and photovoltaics, are aligned with PGE Group’s activities in the research and development area and the innovative approach that is one of the pillars of PGE’s strategy.

Given the fact that Polenergia’s portfolio includes the CHP plant Nowa Sarzyna, the acquisition is also aligned with PGE Group’s District Heating Strategy, announced in December 2017. PGE Group is the leader of the district heating market and wants to put this potential into maximum use. It is also initiating changes across the entire segment, adapting its offering to the needs of both existing and future clients.

The potential acquisition of Polenergia is being treated by PGE Group as the fastest way to achieve balanced inorganic growth and therefore is considered a strategic long-term investment. According to PGE, the tender offer announcement constitutes the most transparent manner of presenting its intentions and allows discussions with Polenergia’s shareholders to begin.

References

[1]

PGE Polska Grupa Energetyczna S.A. Press release - PGE Group announces tender offer for 100% of Polenergia shares. URL: https://www.gkpge.pl/Press-Center/Press-releases/Corporate/PGE-Group-announces-t.... [Date Accessed: 01/10/2018].

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