IFM ups stake in Polish utility

The Australian asset manager has bought an additional 6.6% interest in Dalkia Lodz, a heat and electricity provider in Lodz. IFM had owned 34 percent of the company since April 2006.

Australian investor Industry Funds Management has upped its stake in a Polish utility that provides heat and electricity to more than half a million inhabitants in Lodz, Poland’s second largest city.

IFM will now own 40.6 percent of Dalkia Lodz, up 6.6 percent from the 34 percent stake it has owned since April 2006, when it first invested in the company.

The transaction was fully equity funded, IFM said in a statement. The total size of the investment was not disclosed.

Dalkia Lodz is a privately-held company whose biggest shareholder is Dalkia Polska, the Polish subsidiary of Dalkia Group. Dalkia Group is a European energy provider whose sole shareholders are French water company Environnement (66 percent) and French energy provider EDF (34 percent).

Like many industrial concerns in Poland, Dalkia Lodz was originally owned by the Polish government. Poland’s Treasury Ministry privatised Dalkia Lodz in 2005, when it sold an 85 percent stake in its predecessor company to Dalkia Polska.

Dalkia Lodz owns and operates three power plants in Lodz with a total thermal capacity of 2,500 megawatts, a power capacity of 480 megawatts, and almost 800 kilometres of heating pipes. It serves the heating needs of 70 percent of the 830,000 inhabitants of Lodz, according to an IFM statement.

IFM said the investment brings its total assets under management to $18.2 billion, of which 32 percent, or $5.9 billion, is dedicated to infrastructure holdings such as Dalkia Lodz.