CVC Capital Partners, a London-based private equity and investment management firm, was selected for exclusive talks to buy a power unit from Polish state railways Polskie Koleje Panstwowe SA, the latter said on Monday.
PKP, as the Polish company is known, plans to complete the sale of the unit, PKP Energetyka, in the third quarter, Managing Director Slawomir Baniak said in an e-mailed statement. The Polish company is selling assets to reduce debt, it said.
PKP said in June it received bids for the utility from both within the industry and from financial investors. It planned to complete the sale around the end of September or the start of October.
The railway company received four binding bids, with CVC placing the highest for as much as 1.5 billion zloty ($394 million), Polish business daily Parkiet said on June 13. The fund outbid Polish utilities Energa SA, Tauron Polska Energia SA and Enea SA, according to the daily.