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Poland: DONG Energy to divest its Polish onshore wind business to PGE and Energa
19 Feb 2013
DONG Energy on Tuesday signed an agreement with two Polish utilities, PGE and Energa, under which PGE and Energa will acquire DONG Energy’s Polish onshore wind business. PGE and Energa will each acquire separate parts of the activities.
The aggregate selling price (enterprise value) for the wind-business is approx. PLN 1.0 billion (equivalent to approx. DKK 1.8 billion). Completion of the transaction is subject to approval by the relevant competition authorities.
DONG Energy's Polish onshore wind business has a leading position in development and operation of onshore wind energy in Poland. The business operates three wind farms with a total installed capacity of 111.5 MW and has a development portfolio of more than 700 MW. The business includes a Polish organisation of approx. 40 employees, who will be employed by PGE and Energa going forward.
'The divestment is a step towards realising DONG Energy's previously announced plan to divest assets with an aggregate value of DKK 10 billion during 2013 and 2014. We will thereby release capital to support our investments in, for example, offshore wind, where DONG Energy has a strong market position,' says Henrik Poulsen, CEO of DONG Energy.
Henrik Poulsen stresses that the investment in Polish onshore wind has been a sound investment for DONG Energy, but that the company within wind power will focus on development, construction and operation of offshore wind farms in future.
The transaction is expected to be completed later in 2013 after competition authority approvals have been obtained.
The transaction is expected to result in a net gain before tax of up to DKK 600 million. The net gain will not affect EBITDA.
DONG Energy has a fast growing portfolio in Poland with three operating wind farms with a total capacity of 111.5 MW. The wind farms are all situated in the north-western part of Poland, close to the Baltic Sea.
Karcino Wind Farm: Karcino Wind Farm is the latest DONG Energy wind project in Poland and also our largest wind farm in Poland to date. The wind farm has a total capacity of 51MW. The 17 wind turbines each have a capacity of 3 MW. Read more at the Karcino Wind Farm website
Karnice Wind Farm: Karnice Wind Farm has a total capacity of 30MW. The 13 wind turbines each have a capacity of 2.3 MW. Read more at the Karnice Wind Farm website
Jagniatkowo Wind Farm: Jagniatkowo Wind Farm is also called Lake Ostrowo. The wind farm comprises 17 wind turbines, which in total generate 30.6 MW. The wind farm is located in the north-western corner of Poland in the Zachodniopomorskie Province. Read more at the Jagniatkowo Wind Farm website
Source: DONG Energy / energy-pedia (background info)