Energa to capitalize PGG with PLN 100 mln

WSE-listed, state controlled power utility Energa will capitalize Polska Grupa Górnicza (PGG) with PLN 100 million through its Energa Kogeneracja subsidiary. “This amount will support PGG in expanding its activities and obtaining synergies from incorporation of Katowicki Holding Węglowy's (KHW) production assets into PGG,” Energa said in a market filing. The company expects the investment to bring returns in the long term. “ Looking long-term, taking into consideration the fact that coal mining is our darling, we expect returns in the longer term,” company's CEO Jacek Kościelniak said. Apart from Energa, state-cotrolled utilities PGNiG and PGE agreed to contribute PLN 300 million and PLN 100 million respectively. Government plans to capitalize the troubled coal producers with PLN 1 billion.