Poland’s richest man bids for state-owned utility

Polish billionaire Jan Kulczyk has reportedy made a bid, backed by unnamed global infrastructure funds, to buy over 80% of state-owned utility Energa. The Polish Treasury Ministry is said to have received eight offers after the government decided to sell five Polish utilities to reduce its budget deficit.

Kulczyk Investments, the investment arm of Poland’s richest man Jan Kulczyk, has filed a bid to buy 82.9 percent of state-owned power company, Energa. According to a report in the Wall Street Journal, the company has made its offer through a joint venture with unnamed global infrastructure-focused private equity funds.

Poland’s Treasury Ministry has reportedly received a total of eight offers for the stake that may be worth up to 5.4 billion zlotys (€1.3 billion; $1.6 billion). The government has decided to sell utilities in order to reduce its budget deficit.

Jan Kulczyk

Among other bidders cited are Polish state-controlled utility Polska Grupa Energetyczna, the Polish unit of France’s GDF Suez; Czech utility CEZ AS; Mercuria; Green Pole Energy; PPC Energy Group; Czech Energeticky a Prumyslovy Holding, a joint venture between a group of companies linked with the Czech financier Petr Kellner; and the J&T investment group.

Based in Gdansk in Northern Poland, Energa reported a net income of 425 million zloty (€103.3 million; $125.0 million) on sales of 8.38 billion zloty (€2.0 billion; $2.5 billion) in 2009. Energa is one of five state-owned utilities that the government has decided to sell.

It distributes 19 terawatt hours of energy per year. The company runs a 750-megawatt coal-fired generator and a hydroelectric generator with a capacity of 180 megawatts.