A consortium of Energetick\u00fd a\u00a0pr\u016fmyslov\u00fd holding a.s. (EPH) and its financial partner PPF Investments Ltd., today announced the signing of an agreement for the acquisition of lignite operations in Saxony and Brandenburg from Vattenfall AB.<\/p>\n
\u201cBased on our involvement and experience in the \u2018Mitteldeutsche Braunkohlerevier\u2019, we are convinced that EPH is well positioned to assume the responsibilities related to the ownership of Vattenfall\u2019s lignite assets in Germany in currently challenging market circumstances\u201d, said Jan \u0160pringl, Member of the Board of EPH.<\/p>\n
The consortium and Vattenfall have agreed on the following capital structure for the company owning Vattenfall\u2019s\u00a0lignite operations in Germany: The company records liabilities and provisions, in particular related to re-cultivation and decommission, of approx. EUR 2.0bn. Against these liabilities, it operates significant fixed assets with a\u00a0value of EUR 3.4bn (according to Vattenfall accounting policy) and additionally is expected to retain approx. EUR 1.7bn of cash. With respect to current difficult economic conditions, the consortium committed to waive dividends for the next years to come.<\/p>\n
With the acquisition, the consortium is taking over all regulatory obligations related to the operations, including provisions for decommissioning and re-cultivation. \u201cGiven the currently challenging market dynamics, one of the key concerns in the negotiations has been to provide the company with an appropriate level of cash reserves\u201d, said Mr \u0160pringl.<\/p>\n
The offer is built on the confidence that lignite will continue to play an important role as the bridging technology providing a\u00a0secure and the only domestic, non-intermittent energy supply. \u201cOn a\u00a0mid-term perspective, the fundamental dynamics of the energy market are set to recover. With our relevant industry expertise and a\u00a0cost-disciplined and efficient management of operations we are convinced that lignite is in a\u00a0position to contribute successfully to the rapidly evolving German power mix\u201d, Mr \u0160pringl continued.<\/p>\n
Vattenfall\u2019s operations represent the second largest lignite operations in Germany. They include open-cast mining in J\u00e4nschwalde, Welzow-S\u00fcd, Nochten and Reichwalde as well as the power generation plants J\u00e4nschwalde, Schwarze Pumpe, Boxberg and one block in Lippendorf in the Mitteldeutsche Braunkohlerevier, representing an installed capacity of 8000 MW and a\u00a0total of around 7500 employees. The consortium is strongly committed to employment in the region and intends to retain existing employment agreements. Both MIBRAG and the Vattenfall operations will be operated separately.<\/p>\n
Vattenfall\u2019s German hydro power operations are not included in the acquisition.<\/p>\n
The consortium fully respects the direction taken by the German government under the \u201cEnergiewende\u201d. \u201cWe are convinced that we can contribute to reaching the Energiewende targets, positively contribute to energy security and affordability and to social and economic welfare. In close cooperation with the works council, trade unions, federal and local governments as well as communities and other stakeholders, we want to support the transition that will be necessary to achieve the Energiewende targets as well as to develop new prospects for future generations, while balancing the regional social and economic implications\u201d, said Mr \u0160pringl.<\/p>\n
Through its fully owned portfolio company MIBRAG, currently the third largest lignite operator in Germany, EPH has a\u00a0sustainable presence and expertise in German lignite. EPH has a\u00a0track record of strict adherence to regulation and the application of industry best practice. EPH\u2019s expertise in recultivation is directly derived from the German context. Since 2009, EPH has operated as a\u00a0highly reliable owner in Saxony and Saxony-Anhalt investing approx. EUR 500m in the region (including acquisitions of Saale Energie and Helmstedter Revier).<\/p>\n
The acquisition is subject to approval by the Swedish government and customary regulatory approval. Closing and change of ownership is expected in the third quarter of 2016.<\/p>\n","protected":false},"excerpt":{"rendered":"
A consortium of Energetick\u00fd a\u00a0pr\u016fmyslov\u00fd holding a.s. (EPH) and its financial partner PPF Investments Ltd., today announced the signing of an agreement for the acquisition of lignite operations in Saxony and Brandenburg from Vattenfall AB. \u201cBased on our involvement and experience in the \u2018Mitteldeutsche Braunkohlerevier\u2019, we are convinced that EPH is well positioned to assume the responsibilities related to the ownership of Vattenfall\u2019s lignite assets in Germany in currently challenging market circumstances\u201d, […]<\/p>\n","protected":false},"featured_media":0,"template":"","meta":{"_expiration-date-status":"","_expiration-date":0,"_expiration-date-type":"","_expiration-date-categories":[],"_expiration-date-options":[]},"tax-year":[17],"acf":[],"wpml_current_locale":"en_US","wpml_translations":[{"locale":"cs_CZ","id":12422,"post_title":"Spole\u010dnosti EPH a PPF Investments podepsaly smlouvu o akvizici n\u011bmeck\u00fdch hn\u011bdouheln\u00fdch dol\u016f a elektr\u00e1ren spole\u010dnosti Vattenfall","href":"https:\/\/eph23.atelierzidlicky.eu\/eph-ppf-investments-sign-agreement-acquisition-vattenfalls-german-lignite-activities\/"}],"_links":{"self":[{"href":"https:\/\/eph23.atelierzidlicky.eu\/en\/wp-json\/wp\/v2\/press-releases\/12421"}],"collection":[{"href":"https:\/\/eph23.atelierzidlicky.eu\/en\/wp-json\/wp\/v2\/press-releases"}],"about":[{"href":"https:\/\/eph23.atelierzidlicky.eu\/en\/wp-json\/wp\/v2\/types\/press-releases"}],"wp:attachment":[{"href":"https:\/\/eph23.atelierzidlicky.eu\/en\/wp-json\/wp\/v2\/media?parent=12421"}],"wp:term":[{"taxonomy":"tax-year","embeddable":true,"href":"https:\/\/eph23.atelierzidlicky.eu\/en\/wp-json\/wp\/v2\/tax-year?post=12421"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}