PGE Polska Grupa Energetyczna S.A. does not confirm the media reports of the alleged delay in the finalisation of the cooperation agreement with the BIEG 2012 company providing for the sponsoring of the stadium currently under construction in Gdańsk.
PGE maintains its interest in acquiring the position of the titular sponsor and is negotiating the detailed provisions of the agreement. With regard to some press articles published in the recent days by the Tri-City newspapers, we would like to announce that the work of both parties' negotiation teams on the formal issues necessary for the signing of the Gdańsk stadium titular sponsoring agreement has been continuing without any interruptions.
So far both interested parties have held a few negotiation meetings. Constituting an enclosure to a competition announced by BIEG 2012 last year, the material provisions of the agreement are very general in nature and require a precise specification of the numerous conditions of a sponsor's involvement. Therefore, PGE has proposed a draft agreement detailing its cooperation with BIEG 2012 with respect to the sponsoring of the stadium; this draft is the subject of the pending negotiations.
The agreement between BIEG 2012 and PGE is the first naming rights agreement of this scale in Poland. It is a very complex contract providing for various forms of services in many different areas of cooperation. We believe that for the successful execution of this project, it is important that all provisions of the agreement should be thoroughly discussed and clarified. The agreement will be signed and become effective after all its provisions have been agreed upon. On its part, PGE has not taken any action with a view to acquiring any business or image benefits resulting from the possibility of becoming a titular sponsor of the Gdańsk stadium.
The events in which the name PGE appeared together with the name of the stadium were not initiated by the Company. Our cooperation with BIEG 2012 and the possible acquisition of the title of the sponsor of the stadium is a strategic activity in the process of building the awareness and strengthening the image of the PGE brand. We will finalise the negotiation process as soon as we are convinced that the agreement protects properly the interests of PGE and those of its shareholders. Therefore, we have asked our partner for an extension of the negotiation period until 7 June, and our request has been accepted. We will announce the results of the negotiations in due time.
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PGE Polska Grupa Energetyczna is the largest power engineering company in Poland and one of the largest such companies in Central and Eastern Europe. Thanks to the combination of its own fuel (lignite) resources, power generation and final distribution networks, PGE guarantees a safe and reliable power supply to 5 million households, businesses and institutions. The Company's net power generation amounts to 54 TWh. The installed capacity equals 12.4 GW. The PGE Capital Group has operated under its current structure since 2007. The PGE Capital Group's major areas of activity comprise the mining of lignite and generation of heat and electricity from conventional sources, the wholesale trade of electricity and related products, the retail sales of electricity and heat, the distribution of electricity as well as the generation of electricity from renewable sources. Since 6 November 2009 PGE Polska Grupa Energetyczna S.A. has been one of the largest companies listed on the Warsaw Stock Exchange.