E.ON invited for talks on purchase of the G-8 group

According to information in the Prawo i Gospodarka daily the German energy consortium, E.ON Energie-e.dis. Energie Nord, has been chosen by the T reasury Ministry for exclusive talks on the purchase of a stake in the G-8 group. El-Dystrybucja, managed by entrepreneur Jan Kulczyk, failed to succeed in the bid despite attempts to strengthen its consortium through the financial support of BRE Bank. The ultimate decision on the sale of the shares for around zl. 5 billion will be taken by the government on Tuesday. In order to receive this amount, the Cabinet has to grant special permission for the one-off purchase of 85% of the G-8 group. Currently, the situation is that during the initial stages of a privatization an investor is only allowed to purchase a 25% stake in an energy distributor. However, with the state budget in dire straits financially, this regulation may be relaxed. By the end of May the state had received a dissapointing zl. 667 million from privatization. The choice of E.ON, which has strong financial backing, is highly advantageous both for the budget and the energy market as the new investor intends to introduce market solutions, improve standards of service and modernize energy networks. (Prawo i Gospodarka, p. 1) A.Z.