PGE has been shortlisted as one of the two investors applying for the purchase of an 82.9% stake in Energa SA. Thus PGE has been invited to conduct a more thorough examination of the company and to start negotiations with the State Treasury Ministry.
Such examination will have been completed by 15 September 2010 and the privatisation agreement may be signed soon after this.
A possible transaction could create on the Polish market a unique business entity with a complementary set of competencies, which should generate numerous benefits to the economy, customers and shareholders.
We want to build a strong Polish power group which within the next few years will be able to compete effectively with other entities on the common European energy market. The merger of the potentials of PGE and Energa will ensure a stable and reliable supply of power to the national economy and customers at competitive prices. This will also facilitate the development of Poland's nuclear power generation sector, said Tomasz Zadroga, President of PGE Polskaj Grupa Energetyczna SA.
Analyses conducted so far during the preliminary due diligence process have shown numerous synergy effects between PGE and Energa. If merged, the groups will be more effective and competitive, which will generate benefits for the shareholders, economy and customers - PGE's energy prices are already some of the lowest in the country and thanks to synergy effects resulting from the merger they will continue to be lower than those of the competitors.
Furthermore, cooperation between PGE and Energy within one capital group will have a positive influence on the implementation of necessary investments in the development and modernisation of Poland's power generation industry. This concerns both the distribution infrastructure and the construction of new generation capacities, including those based on renewable resources and nuclear fuel. In a longer-term perspective, this will ensure the reliability of energy supply in Poland and improvement in the quality of provided services.