Orlen's Bold Move: Full Acquisition of Energa to Fuel Energy Transition

Orlen, the Polish state-controlled refiner, is set to acquire the remaining shares of its utility unit, Energa, for around 709 million zlotys. This move aligns with Orlen's investment in renewable and low-emission energy. Full ownership will enhance Orlen's energy transition strategy amidst Poland's uncertain energy landscape.

In a strategic maneuver, Polish state-controlled refiner Orlen announced its plan to fully acquire Energa, its utility unit, by purchasing the remaining shares for approximately 709 million zlotys. This decision is part of Orlen's broader ambition to integrate Energa more tightly into its energy transition strategy, focusing on renewable and low-emission sources.

Orlen is offering 18.87 zlotys per share for the 37.6 million shares it currently does not own, with shareholders invited to submit offers between December 1 and December 17. The company may also begin acquiring shares on the market starting November 27. Since acquiring the majority stake in 2020, Orlen has pursued a massive 380-billion-zloty investment strategy targeting offshore wind and nuclear power.

Gaining full control over Energa and its distribution network is critical to Orlen's transition strategy, providing command over essential grid infrastructure for upcoming projects. This acquisition comes as Poland's energy sector faces uncertainty, with the government abandoning a previous plan to create a national agency for coal assets, leaving state utilities like PGE and Tauron to navigate their own transformation paths.

(With inputs from agencies.)