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PGE, Energa Agree to Buy Wind Assets From Dong for $320 Million

Feb. 19 (Bloomberg) -- PGE SA, Poland’s largest power producer, and domestic peer Energa SA agreed to buy wind assets in the country from Dong Energy A/S for 1 billion zloty ($320 million) as they replace aging coal plants with cleaner energy.

PGE will acquire 60.5 megawatts of operating assets and 555 megawatts under development, the Warsaw-based company said today in a statement. Energa will get a 51-megawatt wind farm and 220 megawatts of planned facilities, according to the filing.

PGE is seeking to replace aging power stations and add non-coal plants to meet European Union rules. The company said last May that wind energy will account for most of its spending on new generation as it raises wind capacity more than sevenfold in four years. For Dong, the divestment of onshore projects will help it finance an offshore wind expansion while cutting costs.

Dong, Denmark’s biggest utility, expects the deal to result in a net gain before tax of as much as 600 million kroner ($108 million), which won’t affect earnings before interest, tax, depreciation and amortization, it said.

The Danish utility, based in Fredericia, plans to sell 10 billion kroner of assets this year and next to support its offshore wind plans and has about 5 gigawatts of sea-based wind projects in various stages of development.

Morgan Stanley advised Energa and Banco Santander SA’s Bank Zachodni advised PGE. The 40 staff employed by Dong at its Polish wind unit will transfer to PGE and Energa.

To contact the reporter on this story: Sally Bakewell in London at sbakewell1@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

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