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.
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.