Reports related to this article:
Plant(s): View 4 related plants in PECWeb
Released March 22, 2016 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Two Czech firms have squared off to buy the German coal mines and associated power assets of Sweden's state-owned Vattenfall AB (Stockholm).
Coal miner Vrsanska Uhelna, part of Czech Coal (Prague), and Energetický a Prùmyslový Holding (EPH) (Brno) with its partner PPF Investments have submitted bids for the company's four power plants and five coal mines. Vattenfall has been trying to sell off the assets since 2014 in an effort to clean up its energy mix by refocusing most of its new investment on renewable energy projects. Conventional power has been dragging down the company's profits in recent years. For additional information, see November 10, 2014, article - Vattenfall to Sell German Coal Operations.
Details of the Vrsanska Uhelna offer were not disclosed, but EPH has made a binding offer for Vattenfall's lignite open-cast mining at Jänschwalde, Welzow-Süd, Nochten and Reichwalde as well as the power generation plants Jänschwalde, Schwarze Pumpe, Boxberg and two blocks in Lippendorf in the Mitteldeutsches Braunkohlerevier, representing a total installed capacity of 8,000- megawatts (MW) and 8,000 employees.
Daniel Køetínský, chairman of the board of EPH said: "EPH is strongly committed to run Vattenfall's lignite operations in Lusatia sustainably and to the benefit of the region and the employees. We believe that our Binding Offer offers a fair and firm value for the Assets and clearly demonstrates our commitment to the transaction, the industry and the region. We also emphasize that we are fully mindful of [the] current economic condition of Vattenfall´s lignite operations, including the fact that in the forthcoming years, unless the power prices will materially recover, the company will not be in a position to distribute any dividends and rather will generate a negative cash flow."
The Czech Republic's state-owned energy company, CEZ AS (PSE:CEZ) (Prague), made a non-binding offer for the assets in January but pulled out of the race recently, citing the continuing fall of wholesale electricity prices in Germany and the government's negative outlook toward coal and the potential closure of coal-fired plants. For additional information, see January 4, 2016, article - CEZ Wants Vattenfall's German Power and Mining Assets.
In July last year, Vattenfall completed its exit from Denmark's conventional power sector with the sale of Nordjylland combined heat and power (CHP) plant near Aalborg. It sold the Amager Power Station in 2013 and Fyns Power Station in 2014. For additional information, see July 16, 2015, article - Vattenfall Exiting Denmark's Fossil Fuel Power Market.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
Coal miner Vrsanska Uhelna, part of Czech Coal (Prague), and Energetický a Prùmyslový Holding (EPH) (Brno) with its partner PPF Investments have submitted bids for the company's four power plants and five coal mines. Vattenfall has been trying to sell off the assets since 2014 in an effort to clean up its energy mix by refocusing most of its new investment on renewable energy projects. Conventional power has been dragging down the company's profits in recent years. For additional information, see November 10, 2014, article - Vattenfall to Sell German Coal Operations.
Details of the Vrsanska Uhelna offer were not disclosed, but EPH has made a binding offer for Vattenfall's lignite open-cast mining at Jänschwalde, Welzow-Süd, Nochten and Reichwalde as well as the power generation plants Jänschwalde, Schwarze Pumpe, Boxberg and two blocks in Lippendorf in the Mitteldeutsches Braunkohlerevier, representing a total installed capacity of 8,000- megawatts (MW) and 8,000 employees.
Daniel Køetínský, chairman of the board of EPH said: "EPH is strongly committed to run Vattenfall's lignite operations in Lusatia sustainably and to the benefit of the region and the employees. We believe that our Binding Offer offers a fair and firm value for the Assets and clearly demonstrates our commitment to the transaction, the industry and the region. We also emphasize that we are fully mindful of [the] current economic condition of Vattenfall´s lignite operations, including the fact that in the forthcoming years, unless the power prices will materially recover, the company will not be in a position to distribute any dividends and rather will generate a negative cash flow."
The Czech Republic's state-owned energy company, CEZ AS (PSE:CEZ) (Prague), made a non-binding offer for the assets in January but pulled out of the race recently, citing the continuing fall of wholesale electricity prices in Germany and the government's negative outlook toward coal and the potential closure of coal-fired plants. For additional information, see January 4, 2016, article - CEZ Wants Vattenfall's German Power and Mining Assets.
In July last year, Vattenfall completed its exit from Denmark's conventional power sector with the sale of Nordjylland combined heat and power (CHP) plant near Aalborg. It sold the Amager Power Station in 2013 and Fyns Power Station in 2014. For additional information, see July 16, 2015, article - Vattenfall Exiting Denmark's Fossil Fuel Power Market.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
