Vattenfall acquires majority holding in Polish energy company
Vattenfall acquires majority holding in Polish energy company Vattenfall is acquiring a majority holding in Electrocieplownie Warszawskie SA. The seller is the Polish Government. The agreement was signed on 27th January. Vattenfall is buying 55 percent of the shares in the Polish energy company Electrocieplownie Warszawskie SA (EW). The purchase price is USD 235 million. The agreement also provides the opportunity of Vattenfall purchasing additional shares. Based on a bidding procedure, the Polish Government decided to conclude an agreement with Vattenfall. This is one of the biggest business deals in the Polish privatization process. "Electrocieplownie Warszawskie strengthens the Vattenfall presence in the Baltic Sea region in the same way as the newly acquired HEW in Germany", says Jörgen Andersson, Vattenfall's Appointed Chairman. "Electrocieplownie Warszawskie is a well-managed company with qualified employees, and the standard of the company's plants is good. The company conforms to all of the Polish environmental legislation in force today. However, investments must be made in order to meet the tighter future EU demands. Several of these demands are stricter than those now in force for fuel-fired plants in Sweden", says Carl-Erik Nyquist. Poland, which has 39 million inhabitants, is now in an expansive phase of its development and the electricity demand is set to rise. Warsaw in particular is in the course of very robust economic development. Due to its strategic geographical location, Poland represents an important stepping stone for promoting co-operation with local customers and also for Vattenfall's expansion in the remainder of Europe. EW now accounts for around 98 per cent of the district heating production and around 68 per cent of the electricity used in Warsaw. The company's six heat and power plants generate an annual total of 4 TWh of electrical energy and 13 TWh of thermal energy. Generation is mainly based on coal firing. Issued by Vattenfall's Press Office, tel: + 46 8-739 50 10 www.vattenfall.se Further information is available from: Carl-Erik Nyquist, President and Group Chief Executive Vattenfall AB Ola Thorén, Press Manager Vattenfall AB, +46 (0)8 7397583 Vattenfall is one of the largest energy companies in the Nordic region, accounting for 20 percent of total electricity sales. The Group generates its electricity primarily through hydro and nuclear plants, with supplementary production using other energy sources. Vattenfall also conducts operations in the areas of heating and natural gas, as well as services and consulting for the energy sector. Vattenfall has direct or indirect 2 millions customers. Vattenfall s customers are energy companies and other industrial enterprises in the Nordic region, as well as retail customers in Sweden and Finland. Vattenfall is also active in Germany, the Baltic countries, Poland, Austria, Holland, Czech Republic, Southeast Asia and South America. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2000/01/27/20040817BIT20420/wkr0001.pdf