Current Report No. 8/2017

Date of preparation: 27 January 2017

Subject: Launch of negotiations with EDF Inwestycja SAS

Legal basis: Article 17, Section 1 of the Market Abuse Regulation - confidential information 

In reference to current reports no. 31/2016 of 16 September 2016 and report no. 46/2016 of 30 November 2016 concerning the submission, together with partners, a proposal for the acquisition of the assets of EDF Investment SAS (“EDF”) in Poland, the Management Board of ENERGA SA (“Company”) reports that on 27 January 2017 the Company, together with ENEA S.A., PGE S.A. and PGNiG Termika S.A. (“Business Partners”), signed a Memorandum of Understanding with EDF concerning the negotiation of the acquisition of EDF’s assets in Poland (“Transaction”) and due diligence in this respect.

The Transaction includes:

• acquisition of all shares of EDF in EDF Polska S.A., which is the owner of in particular: 4 CHPs i.e. Kraków, Gdańsk, Gdynia and Toruń, district heating network in Toruń, Rybnik power plant, and
• acquisition of all shares of EDF in Zespół Elektrociepłowni Wrocławskich Kogeneracja S.A., which is the owner of 4 CHPs i.e. Wrocław, Zielona Góra, Czechnica and Zawidawie and district heating network in Zielona Góra, Siechnica and Zawidawie. 

The Business Partners have agreed that a binding proposal, if any, will be submitted following a due diligence exercise, which will form grounds for making further decisions about the Transaction.

The Company will issue a separate report announcing the execution of legally binding documentation related to the Transaction or on ending the Transaction-related negotiations otherwise.