PGNiG TERMIKA S.A. purchased 100% of the shares in Przedsiębiorstwo Energetyki Cieplnej S.A. of Jastrzębie-Zdrój for PLN 190.4m. 'Today's transaction will increase our share in the district heating market, which is in line with the objectives of the PGNiG Group's strategy,' said Piotr Woźniak, PGNiG S.A.'s Chief Executive Officer.

Krzysztof Tchórzewski, the Minister of Energy, pointed out the close connection between mining and energy companies. 'The transaction was executed on an arm's length basis, and both parties are satisfied with the outcome of their negotiations. The PGNIG Group is becoming a strong player on the heat market in Poland and a major competitor for foreign companies.'

The agreement on purchase of PEC S.A. shares was signed with Spółka Energetyczna Jastrzębie S.A. on April 28th 2016.

'I am glad the PGNiG Group has acquired such a promising company that will strengthen our heat segment. Seeking to achieve the strategic goal of expanding this segment of our business, we will continue to look for attractive assets at reasonable prices,' added Piotr Woźniak.

'Following the acquisition, we will be able to conduct our business in regions of Poland where we have not been present so far. PEC Jastrzębie operates in highly promising heat markets of Upper Silesia, where we see growth potential over a short term. As its sole owner, we will continue to support the company's further growth, which will in turn build value for the PGNiG Group,' said Wojciech Dąbrowski, Chief Executive Officer of PGNiG TERMIKA.

PEC is involved in the distribution and generation of heat in the municipalities of Jastrzębie-Zdrój, Czerwionka-Leszczyny, Knurów, Racibórz, Kuźnia Raciborska, Pawłowice, Rybnik, Wodzisław-Śląski and Żory. The company operates 288 km of heating networks and 14 local heating plants, which generate 40% of all heat sold by PEC. Total sales of heat by the company in 2015 amounted to 2.6 PJ.

Another step in the PGNiG Group's strategy of acquisition of heating systems is an offer, submitted by PGNiG TERMIKA on April 28th 2016, to acquire shares in Spółka Energetyczna Jastrzębie SA (SEJ) from Jastrzębska Spółka Węglowa SA.

The business conducted by SEJ consists in the generation of electricity and heat for the needs of Jastrzębska Spółka Węglowa SA's mines and other industrial customers, as well as generation of heat for households, which is distributed by PEC. The amount of heat delivered by SEJ to PEC is about 0.9 PJ per year, which represents 60% of SEJ's total heat output. In addition, SEJ is involved in the generation of compressed air and cold for Jastrzębska Spółka Węglowa SA's mines.

PGNiG S.A. Communications Department

PGNiG - Polish Oil & Gas Company issued this content on 29 April 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 29 April 2016 06:41:25 UTC

Original Document: http://en.pgnig.pl/news/-/news-list/changeYear/2016?_newslistportlet_WAR_newslistportlet_urlTitle=pgnig-increases-its-share-in-the-heat-generation-and-distribution-market&_newslistportlet_WAR_newslistportlet_newsGroupId=18252&_newslistportlet_WAR_newslistportlet_action=newsDetails&_newslistportlet_WAR_newslistportlet_currentPage=1