In 2014, Vattenfall announced its plan to sell lignite assets which include open-cast coal mines Jänschwalde, Welzow-Süd, Nochten and Reichwalde.
The assets considered for the sale also include power generation plants Jänschwalde, Schwarze Pumpe, Boxberg and two blocks in Lippendorf in the Mitteldeutsches Braunkohlerevier.
The bids have been submitted by Coal miner Vrsanska Uhelna, a part of Czech Coal, as well as privately-held energy group EPH together with private equity group PPF Investments, reported Reuters.
EPH board chairman Daniel KretÃnský said: "EPH is strongly committed to run Vattenfall’s lignite operations in Lusatia sustainably and to the very benefit of the region and the employees.
"We strongly believe that our offer provides a compelling solution for lignite in Eastern Germany.
"We also offer to the seller a fair economic condition of the sale respecting the real value of the assets and respecting liabilities attached to it."
The power plants have a combined capacity of 8000MW with total 8000 employees.
KretÃnský added: "We also emphasize that we are fully mindful of current economic condition of Vattenfall´s lignite operations, including the fact that in the forthcoming years, unless the power prices will materially recover, the company will not be in a position to distribute any dividends and rather will generate a negative cash flow."
Meanwhile, another Czech firm CEZ announced its decision not to bid for the Vattenfall’s German assets citing unfavourable development in wholesale electricity prices and uncertainty over early closure of coal power plants in Germany.
The company, however, said it would consider other possible options and terms of the acquisition.
Image: Vattenfall-owned Jänschwalde power station in Germany. Photo: courtesy of Ra Boe/ Wikipedia.
