Enea confirms Połaniec Plant takeover

Enea confirmed in a press release on Tuesday that it will acquire 100 percent of the shares of Engi Polish Energy, Poland's fifth-largest energy company and one that owns Poland's largest biomass power plant - Połaniec. A report earlier this month in this publication indicated that Enea had attained exclusive negotiating rights for Engi's shares. The deal was said to be valued at PLN 1.07 billion. "Signing the agreement opens the way for us to acquire Połaniec Power Plant, one of the newer and more modern system power plants in Poland. [It is a] valuable asset acquired at an optimum price," said Mirosław Kowalik, CEO of Enea. The company said that the transaction will allow it to increase its share of the Polish energy market and grow its profits, as well as enable it to protect the wholesale market's liquidity. "The power plant in Połaniec is a very effective unit. The transaction will positively affect the revenue growth [of Enea]. The added value of the acquisition are the synergies that we will be able to realize thanks to the cooperation between the manufacturing and the extraction segments," Mikołaj Franzkowiak, Enea's CFO added in the statement. The closing of the transaction is subject to consent from the Ministry of Energy and the president of the Office of Competition and Consumer Protection (UOKiK), the statement acknowledged.