PGNiG enters into exclusive negotiations with Tauron Polska Energia to acquire all shares in TAURON Ciepło

The Management Board of Polskie Górnictwo Naftowe i Gazownictwo S.A. (“PGNiG”, the “Company”) announces that on June 16th 2020 PGNiG commenced exclusive negotiations with Tauron Polska Energia S.A. to acquire all shares in TAURON Ciepło Sp. z o.o. (the “Transaction”).
The Transaction, to be completed in the first quarter of 2021, is subject to the fulfilment of material conditions precedent, including obtaining the required administrative and corporate approvals.
The principal business of TAURON Ciepło Sp. z o.o. is generation, distribution and sale of heat, and generation of electricity. TAURON Ciepło Sp. z o.o. owns heating networks with a total length of 857 km, located in the Silesian and Dąbrowa Basin urban area. TAURON Ciepło Sp. z o.o.’s generation capacity comprises 1,160 MWt of thermal power and 347 MWe of electrical power, generated by three CHP plants and by district heating plants. In 2019, TAURON Ciepło Sp. z o.o. generated net sales of heat of 12.01 PJ (including autoproduction of 6.02 PJ) and electricity of 1.20 TWh.
The acquisition of the equity interest in TAURON Ciepło Sp. z o.o is consistent with the PGNiG Group Strategy for 2017–2022 (with an outlook until 2026) announced in Current Report No. 19/2017 of March 13th 2017, as regards the development of the PGNiG Group’s heat and power generation business.
PGNiG also announces that acting under Article 17(4) of Regulation (EU) No. 596/2014 of the European Parliament and of the Council of April 16th 2014 on market abuse and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC, it has delayed the publication of the following inside information:
- PGNiG Management Board’s decision of September 17th 2019 to submit an initial non-binding offer to acquire all shares in TAURON Ciepło Sp. z o.o. held by Tauron Polska Energia S.A.
- PGNiG Management Board’s decision of May 19th 2020 to submit a binding offer to acquire all shares in TAURON Ciepło Sp. z o.o. held by Tauron Polska Energia S.A.