Poland’s PGE Polska Grupa Energetyczna has completed acquisition of EDF's Polish power and heating assets for around €1.4bn, to improve the country’s energy security.
As part of the deal signed in May 2017, PGE acquired the EDF Polska’s assets including Rybnik generation plant, the coal cogeneration plants of Krakow, Czechnica, Gdansk, Gdynia, Torun and Wroclaw as well as the gas fired cogeneration plants of Zawidawie and Zielona Gora.
Additional assets acquired by PGE include the heat distribution networks of Czechnica, Torun, Zawidawie and Zielona Gora.
PGE also indirectly purchased Wroclaw plant, the plants and heat distribution networks of Czechnica, Zawidawie and Zielona Gora through a 50% + 1 share stake via the Kogeneracja company.
The transaction perimeter represents a total installed capacity of 4.4GWth and 1.4 GWe.
EDF said: “This transaction contributes to a reduction of EDF Group net indebtedness which amounts to €1bn.”
The sale is a part of EDF’s strategy to divest about €10bn worth of assets over the 2015-2020 timeframe.
EDF, however, said it will have presence in Poland through EDF Energies Nouvelles, Dalkia Energy Polska and Fenice Poland.
PGE Polska Grupa Energetyczna management board president and CEO Henryk Baranowski said: “The acquisition of EDF’s Polish assets and commencement of the process to incorporate them into PGE Group is a historic moment and a great success for us.
“Closing this strategic transaction will positively change the Group’s business structure, making room for significant growth in the promising segment of regulated district heating and cementing PGE’s leading position on the energy market.”
The Polish state owns 58% stake in PGE, which is the country’s largest electricity producer.
Image: PGE Polska Grupa Energetyczna intends to improve the country’s energy security. Photo: © PGE Polska Grupa Energetyczna SA.