Enea Utility Drops Most in Two Years as Vattenfall Selling Stake

Enea SA, Poland’s fourth-biggest power utility, slumped the most in more than two years as Sweden’s Vattenfall AB is selling its entire 19 percent stake.

The stock fell as much as 9.5 percent and traded 8.2 percent lower at 13.2 zloty as of 10:59 a.m. in Warsaw, valuing state-controlled Enea at 5.83 billion zloty ($1.9 billion). Vattenfall is seeking to sell as many as 82.4 million shares in the biggest offering since the government sold a 2.4 billion-zloty stake in Energa SA, Enea’s competitor, last month.

“It’s a large stake and I suppose that local pension funds are not likely to be active while Polish utilities are not favored by foreign investors,” Dawid Czopek, who helps manage the equivalent of $2.1 billion at Warsaw-based mWealth Management SA, said by phone today. “However, given today’s slump it seems that there still can be buyers if the stock price hovers around 13 zloty.”

Vattenfall, which bought the stake at 20.14 zloty a share in 2008 and became the Poznan-based company’s second-largest shareholder, is withdrawing from non-core areas, including Poland, to focus on Sweden, Germany and the Netherlands. In 2011 Vattenfall sold its Polish power and heating units to Tauron Polska Energia SA and Polskie Gornictwo Naftowe i Gazownictwo SA for 7.59 billion zloty.

The Polish government, which holds a 52 percent stake in Enea, has twice abandoned efforts to find a strategic investor for the utility, after holding talks with RWE AG in 2009 and Electricite de France SA in 2011.

The fact that Vattenfall is looking to exit via an accelerated bookbuilding “suggests the government’s plans to find a strategic buyer for the company remain on hold, so there is no takeover story on the horizon,” Bram Buring, a Prague-based analyst at Wood & Co., said in a note today.

Enea shares dropped 14 percent last year, compared with a 7.1 percent decline in the WIG20 (WIG20) index of the country’s largest and most liquid stocks, according to data compiled by Bloomberg.

To contact the reporter on this story: Piotr Bujnicki in Warsaw at pbujnicki@bloomberg.net

To contact the editor responsible for this story: Wojciech Moskwa at wmoskwa@bloomberg.net

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