Poland’s PGE seeks to acquire Polenergia

Polish power group PGE Polska Grupa Energetyczna SA (WSE:PGE) on Tuesday said it is willing to acquire all shares of compatriot Polenergia SA (WSE:PEP) in a move it expects to boost electricity and heat production and expand its wind portfolio.

PGE is offering PLN 16.29 (USD 4.23/EUR 3.79) per share for 45.4 million of Polenergia’s ordinary shares on the Warsaw stock exchange. The bid was placed by Pekao Investment Banking, which is providing financial advice to PGE, and will run between July 13 and September 20.

The target entity is an electricity producer and generates power both from conventional and renewable sources. It is also involved in electricity trading and distribution, electromobility, energy storage and photovoltaics. The company owns 245.3 MW of Polish onshore wind capacity has an additional 267 MW of projects under development. Separately, it has 1,200 MW of offshore wind schemes in the development stages, according to its website.

The takeover is in line with PGE’s business strategy and is expected to lower PGE’s average emission levels of greenhouse gases thanks to Polenergia’s wind assets. Overall, the target company’s assets complement PGE’s business profile and correspond to its scope of operations, PGE said. In addition to enhancing its wind portfolio, the addition of the particular assets will also raise PGE’s share in the power distribution market, it added.

(PLN 1.0 = USD 0.272/EUR 0.232)

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