Signing of the initial agreement on setting-up of SPV for the nuclear power plant construction project


07.03.2023 11:22

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

Contents of the report

The Management Board of PGE Polska Grupa Energetyczna S.A. (“PGE”) with reference to the current report no. 48/2022 of October 31, 2022 on signing of a letter of intent regarding a cooperation on the development of a nuclear power plant (the “Letter of Intent”), discloses that on March 7, 2023 PGE signed with ZE PAK S.A. (the “Parties”) an initial agreement (the “Agreement”) on setting-up a joint special purpose vehicle (the “SPV”).

In order to begin direct cooperation on project of construction of nuclear power plant based on the Korean technology APR1400 (the „Nuclear power plant”) the Parties intend to set up jointly the SPV in form of a joint-stock company based in Konin that will then acquire or subscribe for shares in a company with a task to pursue project of Nuclear power plant construction with a potential share of technological partner.

The Agreement includes a summary of main terms of Parties’ cooperation in terms of joint venture intended to participate in implementation of Nuclear power plant investment, including determination of corporate governance rules and operations of the SPV and limitations in selling shares of the SPV. The Parties will possess equal number of shares in the SPV and corporate rules will be based on the rule of joint control.

Setting up the joint venture (i.e. SPV) by the Parties is dependent on the obtaining the consent of the President of the Office of Competition and Consumer Protection for concentration. The Parties intend to file for the concentration consent immediately.

At the same time the Parties plan that the SPV, in the next stage of cooperation will perform: (i) feasibility study, (ii) site survey, and (iii) environmental impact assessment for the needs of planned construction of Nuclear power plant.

In case of circumstances that prevent setting-up of the SPV, PGE will release such information in form of the current report.

Signatures of persons representing the company

Date Name Position and function
2023-03-07 Rafał Włodarski Vice-President of the Management Board
2023-03-07 Wanda Buk Vice-President of the Management Board