Polish utility PKN Orlen has announced plans to take over local utility Energa.
The company has launched a tender offer to buy up all the shares in the Energa Group and says that the proposed transaction is in line with its strategy to develop into a “strong multi-utility player”.
“As declared earlier, we are consistently pursuing our priority goal of building a strong business capable of successfully competing on the international marketplace and resilient to changing macroeconomic factors,” said Daniel Obajtek, CEO and President of the PKN Orlen management board. “Our drive to diversify revenue sources fits in both with our strategic vision and with global trends.”
Under the tender offer, the price per Energa share has been set at PLN 7. Energa owns more that 50 renewable energy generation assets, including wind, solar and hydropower plants. It also has an extensive distribution network with a total length of 188 000 km, covering almost a quarter of Poland’s territory.
PKN Orlen is now Poland’s fourth largest producer of electricity with an installed capacity of around 1.9 GW, 1.6 GW of which is located in Poland and includes two CCGT plants. Successful closure of the proposed deal will help PKN Orlen to balance its conventional capacities with renewable sources, it said.