Orlen announces move on power company

Poland’s largest industrial company PKN Orlen announced a call for 100 percent of the shares of Gdansk-based Energa, seen by the market as a move towards creating an energy group.

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The move on Energa follows on Orlen’s advanced plans to take over its rival, oil firm Lotos, as well as suggestions it would take a stake in gas firm PGNiG.

Energa, which supplies 2.5 million customers mostly in northern Poland, was floated on the stock exchange six years ago.

The call price of 7 PLN (EUR 1.64) per share offer compares unfavourably with the 2012 launch price of PLN 17 (EUR 4).

Energa has had a rough ride of late, having difficulties in guaranteeing investment in a new coal-fired power plant in Ostołeka in north-central Poland.

However, the chairman of Orlen, Daniel Obajtek, who for a year was the chairman of Energa, has said that the purchase will ease pressure on the oil company’s supply energy needs. Having Energa as part of the group will mean that 30 percent of the group’s pre-tax earnings (EBITA) will come from the power generation sector.