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EDF is announcing the signing of an agreement with PGE for the sale of EDF Polska’s assets

Following the unilateral put option agreement received on May 11, 2017 and the authorization by its Board of Directors, EDF signed today the agreement relating to the disposal of all of EDF Polska assets (cogeneration and electricity generation) [1] to PGE Polska Grupa Energetyczna SA [2].

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The transaction values 100% of the scope of EDF Polska at c. 6.1 billion zlotys (c. 1.4 billion euros [3]), representing 4.9 billion zlotys (c. 1.1 billion euros [4]) after deduction of minority interests. This agreement follows the negotiations initiated in January 2017 with a consortium of Polish utilities.

This operation comes within the framework of EDF’s CAP 2030 strategy and represents another major milestone in the assets disposal plan of at least 10 billion euros over the 2015-2020 period. EDF Group’s carbon footprint will reduce by c.23% after this transaction.

The required regulatory approvals and authorizations, including in particular the authorization from the Polish competition authorities, the approval form the Polish government, and the waiver of the pre-emption right by the agricultural lands agency, will need to be obtained to pursue and finalize the sale process. The closing of the transaction may occur in the second semester of 2017.

The EDF group will maintain its presence in Poland through its subsidiaries EDF Energies Nouvelles and DK Energy Polska. It also intends to remain a partner of the Polish government in the context of the evolution of the country’s energy mix, including its nuclear programme.

Next Finance , May 22

Article also available in : English EN | français FR

Footnotes

[1] (1) The transaction perimeter includes the Rybnik plant, the coal cogeneration plants of Krakow, Czechnica, Gdansk, Gdynia, Torun and Wroclaw as well as the gas fired cogeneration plants of Zawidawie and Zielona Gora. This perimeter represents a total installed capacity of 4.4 GWth and 1.4 GWe. It also includes the heat distribution networks of Czechnica, Torun, Zawidawie and Zielona Gora. The Wroclaw plant, the plants and heat distribution networks of Czechnica, Zawidawie and Zielona Gora are held indirectly through a 50% + 1 share stake via the Kogeneracja company.

[2] PGE is held at 58% by the Polish state and is the country’s largest electricity producer.

[3] As of December 31st, 2016.

[4] As of December 31st, 2016.

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