Updated information on submitting of an initial non-binding offer for acquisition of shares in Fortum Group’s assets

With reference to current report no. 30/2020 dated October 27, 2020 on submitting of an initial non-binding offer for acquisition of shares in Fortum Group’s assets located in Poland, Estonia, Latvia and Lithuania by a consortium with participation of PGE, the Management Board of PGE Polska Grupa Energetyczna S.A. (“PGE”) discloses that on November 16, 2020 PGE and Polskie Górnictwo Naftowe i Gazownictwo S.A. (the “Partners”), submitted a revised, initial non-binding offer to acquire certain assets owned by Fortum Holding B. V. (the “Offer”).

Under the revised Offer, the Partners are bidding for the district heating business operated by Fortum Holding B.V. exclusively in Poland. PGE further announces that the Partners abandoned their original intention to purchase the Fortum Group’s assets operating in Estonia, Lithuania and Latvia, and decided they would not participate in the investment consortium with PFR Inwestycje FIZ and IFM Investors Pty Ltd.

The Partners will continue to work together towards the submission of a binding offer.

The core business of Fortum Holding B.V.’s Polish subsidiary is generation, distribution and sale of heat and the generation of electricity.

The acquisition of the shares in the Fortum Group’s assets is in line with PGE Group’s Strategy until 2030 announced on October 19, 2020 (current report no. 29/2020 dated October 19, 2020).