CEE Equity Partners, advisor to the China CEE Investment Co-operation Fund, announces the completion of a PLN 240 million investment in the newly created Polenergia S.A.
This entity is the result of the merger of assets from the privately owned Polenergia group being acquired by Polish Energy Partners (PEP). The company, which is to be called Polenergia S.A., will become the largest independent vertically integrated utility in Poland, listed on the Warsaw Stock Exchange.
This deal was the first to be closed for the China-CEE Fund, which was launched at the beginning of 2014. The Fund has an initial $500 million to invest in the CEE region over the next 2-3 years focusing on infrastructure, including energy and telecommunications, and specialist manufacturing.
The investment horizon on which CEE Equity Partners concentrate is 7 to 9 years, which makes the China-CEE Fund an ideal stable investor with a long-term growth outlook for Polenergia.
The Fund has acquired new shares at the issue price of PLN 33.03 per share for an investment of PLN 240m and a 16% holding in the enlarged entity.
The support of a strong financial investor, as well as the injection of assets already generating stable returns and cash flows, is the next stage of development for the largest Polish independent vertically integrated utility. The new entity will be a meaningful investment alternative to state controlled utilities listed on the Warsaw Stock Exchange.
CEE Equity Partners is the Investment Advisor for the China-CEE Fund, which has capital invested by the Export-Import Bank of China as well as CEE Institutions.
CEE Equity Partners is looking for further investments opportunities in the entire CEE region typically requiring USD 25-75m of equity with larger transactions also financed with partners or with bank debt. CEE Equity Partners’ team comprises expert investment professionals with a long track record in similar projects in the region and with wide experience in co-operative development of portfolio investments.
PEP is a leading and one of the most dynamically growing energy companies in Poland. It has been listed on the Warsaw Stock Exchange since 2005 and from 2012 its controlling shareholder has been Kulczyk Investments.
The funding provided by this deal will enable the group to continue its rapid expansion of renewable energy sources and particularly to develop and construct its wind portfolio in Poland with the aim of achieving over 900 MW of operational wind assets.
Polenergia is a Polish independent power utility with an international reach that comprises vertically integrated companies active in conventional and renewable power generation, as well as distribution and sale of electricity. It is one of the key strategic investments in the global profile of Kulczyk Investments.
CEE Equity Partners Ltd
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