Conditional agreement for sale of shares in PGG


03.08.2022 16:02

Art. 17 sect. 1 of MAR – inside information.

Contents of the report

The Management Board of PGE Polska Grupa Energetyczna S.A. (the "Company", „PGE”) discloses that on August 3, 2022 a Conditional Agreement was signed for the sale of shares of Polska Grupa Górnicza S.A. (the ”Shares Sale Agreement”), („PGG”). The sellers in the Shares Sale Agreement include: PGE Górnictwo i Energetyka Konwencjonalna S.A. (PGE’s subsidiary), ECARB Sp. z o.o., PGNiG Termika S.A., ENEA S.A., Polski Fundusz Rozwoju S.A., Towarzystwo Finansowe Silesia Sp. z o.o. and WĘGLOKOKS S.A., and the purchaser is the State Treasury of Republic of Poland (the ”State Treasury”).

According to the Shares Sale Agreement, PGE Górnictwo i Energetyka Konwencjonalna S.A. will sell to the State Treasury all possessed shares in PGG, i.e. 6 000 000 ordinary registered shares (representing 15.32% in the PGG’s share capital), for the amount of PLN 1 for all possessed shares. The value of the investment in PGG in the PGE Group’s latest published consolidated financial statements as at March 31, 2022 amounts to zero PLN, therefore the sale of PGG shares will not have a significant impact on the net result of the Company and of the Group.

The transfer of the ownership of shares will take place provided that the National Support Centre for Agriculture (KOWR) will not exercise the pre-emption right, pursuant to art. 3a section 1 of the Act of April 11, 2003 on the shaping of the agricultural system.

At the same time, the Company emphasizes that its intention is to inform in the form of a current report only about the circumstances preventing the completion of the Shares Sale Agreement, particularly about the exercising the pre-emption right by KOWR, that is mentioned above.

Signatures of persons representing the company

Date Name Position and function
2022-08-03 Lechosław Rojewski Vice-President of the Management Board
2022-08-03 Ryszard Wasiłek Vice-President of the Management Board