Vattenfall buys GZE stake, pledges zl.2.8 billion investment

Swedish energy group Vattenfall yesterday acquired a 25% stake in Poland's largest energy distributor, Gornoslaski Zaklad Energetyczny, for euro 167.5 million and pledged to invest a further zl.2.8 billion in the company over the next 10 years. Within two year Vattenfall will raise GZE's equity by a further euro 165 million and in three years' time it will have an option of increasing its stake to 75% minus 1 share by paying a further euro 187 million. Last week Vattenfall acquired German energy firm Veag, giving it some 10% of the German market. "For Vattenfall Germany and Poland are two key markets outside of Sweden and [the GZE] deal is an important part of that strategy," said Torbjorn Wahlborg, head of Vattenfall Poland. GZE, which provides energy for the densely-populated Upper Silesia region, last year recorded an operating profit of zl.100 million over zl.1.97 billion revenues. (Reuters) T.J.