PGE to pay PLN 4.51 bln for Polish EDF assets

WSE-listed, state-owned power utility PGE will pay PLN 4.51 billion for the Polish EDF assets, the company informed. The value of the transaction includes PLN 2.45 billion in equity value and PLN 2.06 billion in debt and is expected to be finalized the deal by January 2, 2018. PGE will also be obliged to launch a tender offer for ZEW Kogeneracja to increase its stake to 66 percent. The cost of such an offer is not included in the price tag estimate. PGE has no plans to delist the firm or seek a stake above 66 percent, PGE CEO Henryk Baranowski said. PGE also expects to spend PLN 600-700 million on adjusting the assets to the current technology. EDF Polska owns four power and heat-generating plants and a coal-fuelled power plant, as well as EDF's 50 percent stake in Kogeneracja, which owns another four power and heating plants.