PEP Soars as Chinese Fund to Buy Stake in Wind Park GroupMaciej Martewicz
Polish Energy Partners SA, the wind park operator controlled by billionaire Jan Kulczyk, jumped the most on record after a Chinese private-equity fund agreed to buy a 240 million-zloty ($78 million) stake.
The shares rose as much as 25 percent to 30.88 zloty and closed 23 percent higher to 30.40 zloty in Warsaw, valuing PEP as the company is known at 648 million zloty. The benchmark WIG30 Index fell less than 0.1 percent.
Export-Import Bank of China’s CEE Equity Partners will buy 7.27 million new shares at 33.03 zloty each, helping finance construction of 380 megawatts of wind farms by 2016, the Warsaw-based company said in an e-mailed statement late on July 18. PEP will also issue 16.9 million shares at the same price to take over Kulczyk’s Polenergia Holding SA and plans to sell a further 12.7 million shares to the public by early 2015.
The company, which Kulczyk bought in 2012, is raising money to fund construction of wind farms as Poland is preparing new rules to reduce government subsidies for renewable energy.
Polenergia trades and distributes electricity and operates a 116-megawatt heat and power plant in Nowa Sarzyna. The company also owns off-shore wind farm projects, a plan for a coal-fired plant and a gas link between Poland and Germany.
In 2017-2022, PEP plans to build additional 500 megawatts of on-shore wind farms and 600 megawatts of off-shore farms on the Baltic Sea, for which it wants to find a partner. By 2018 it plans to complete a gas pipeline between Poland and Germany to ship 5 billion cubic meters of the fuel a year, according to a presentation on its website.
The company may also sell its 1,800-megawatt, coal-fired power plant project Elektrownia Polnoc in 2016.