PKN Orlen, Energa on course to forming strong, multi-energy concern
Poland’s largest refiner PKN Orlen, which has recently taken over state-controlled utility Energa, said the acquisition will help build a strong, national multi-energy concern.
PKN's CEO Daniel Obajtek said the concern will be strong enough to get involved in billion zloty investments and take an active part in the energy transformation.
"Both, Energa and Orlen, need a strong multi-energy concern. Such concerns may implement Poland's energy policies," Obajtek said on Monday adding that such businesses are resistant to economic turmoil, for example linked with the coronavirus pandemic.
PKN Orlen aims to purchase all 414 million shares of the Energa power company based in Gdansk, northern Poland. With some 3 million customers, Energa, employing around 10,000 people, holds 17 percent of the domestic power market. It operates mainly in northern and central Poland.
Obajtek said that Orlen wants to eventually take over 100 percent of Energa shares but will focus on investments for the time being.
Orlen has already received the unconditional consent of the European Commission to take over the Energa Group. Obtaining the Commission’s approval was one of the conditions for the merger.
Last December, PKN said it planned to buy 100 percent of Energa in a tender offer of PLN 7 (EUR 1.55) per Energa share, valuing the company at PLN 2.9 billion (EUR 640 million). However, on April 15, the concern decided to offer PLN 8.35 (EUR 1.85) per share.
In March, citing coronavirus-related problems, the company extended the share subscription deadline by almost two weeks to April 22.
Energa is one of Poland's biggest energy companies and one of the country's three largest suppliers of electricity.
PKN is the largest electricity generator in Poland’s gas-fired CHP sector, with annual generation of 8 TWh, compared to Energa’s 3.6 TWh.
PKN is 27.52 percent state-owned, while retirement funds Nationale-Nederlanden and Aviva Santander own 7.01 percent and 6.08 percent respectively. The remaining shareholders, who own less than 5 percent stakes, account for 59.02 percent of the company’s shares.
PKN is also preparing for the takeover of its much smaller rival, the Gdansk-based refiner Lotos.