PGE signs agreement to buy EDF Polish assets

PGE Polska Grupa Energetyczna SA, a company controlled by the Polish State and the main electricity producer in Poland, is to acquire all of EDF Polska assets (cogeneration and electricity generation).

PGE submitted a unilateral put option agreement, as a result of the negotiations initiated on January 2017.

In December the Polish government prevented EDF from selling the plants to two private investors - Australia's IFM Investors and Czech utility EPH.

EPH and IFM had offered a total of PLN1.5 to 2 billion (US$366-488 million). EDF now expects that the Polish consortium offers at least as much as EPH and IFM.

This transaction has been presented to the EDF Group employees representative bodies in accordance with the Group social guidelines, and the execution of the agreements shall be submitted shortly for approval to EDF's board of directors.

The closing of the transaction may occur during the second semester 2017, after obtaining the required regulatory approvals, in particular the prior authorization from the Polish competition authority and the approval from the Polish government.

Last month state-run utility Enea agreed to buy the coal-fired power plant operator Polaniec from Engie.