Four energy firms sign memorandum to purchase Polish assets of EDF

Four companies – Enea, Energa, PGNiG Termika and PGE have signed a Memorandum of Understanding regarding negotiations over the purchase of assets of gas and electricity supplier, EDF, according to a press release jointly issued by the companies on Sunday. The deal, if it goes ahead as planned, will include the purchase of all shares of EDF Poland, which owns four power plants – at Kraków, Gdańsk, Gdynia and Toruń, as well as heat distribution networks in Toruń, the Rybnik Power Plant and the acquisition of all shares of EDF ZEC Cogeneration. When the intention to sell EDF was first announced in October, 2016, the Polish government did not consent to EDF’s division. As a result, exclusive contract negotiations between EDF and IFM investors took place. By December, Energy Minister Krzysztof Tchórzewski stated that the government was considering approving the sale. “Business partners have agreed that the submission of a binding offer will be possible after the completion of due diligence, which will be the basis for further decisions relating to the transaction,” part of the release read. In addition to the heat distribution and coal-fired power plants mentioned above, the deal is set to give the four companies ownership of cogeneration power plants in Wrocław, Zielona Góra, Czechnica and Zawidawie and heat distribution networks in Zielona Góra, Siechnice and Zawidawie. EDF is a London-based energy company that operates power plants, both coal-fired and nuclear. It employs over 13,000 people across Europe.