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Poland's Tauron says bids to buy troubled Brzeszcze mine

Published 2015-09-10, 09:16 a/m
Poland's Tauron says bids to buy troubled Brzeszcze mine
SNS
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TPE
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WARSAW, Sept 10 (Reuters) - Poland's second-biggest power
firm Tauron TPE.WA said on Thursday it has submitted an offer
to buy assets owned by the troubled state-run Brzeszcze mine.
The already highly-indebted Tauron said it submitted the
offer through a special purpose vehicle (SPV) in which it will
ultimately hold a 40-percent stake. The rest of the SPV will be
controlled by two other state-run entities.
SRK, a state-owned coal mines restructuring company and the
current Brzeszcze owner, has announced a public tender to sell
the mine, meeting one of the conditions set by Tauron for it to
submit an offer.
SRK said there were three offers for Brzeszcze, but did not
name the bidders.
Local billionaire Michal Solowow, the main shareholder in
Polish chemicals maker Synthos SNS.WA , said earlier this week
that company might also submit an offer.
Tauron said previously it would purchase Brzeszcze assets
only for a "token sum" in a public tender because of the risk of
potentially having to return funds deemed as illegal public aid.

SRK was to restructure the loss-making mines owned earlier
by state-run Kompania Weglowa (KW), the European Union's largest
coal miner, which stood on the brink of bankruptcy due to
falling coal prices and high costs.
Tauron's offer for Brzeszcze is a part of Poland's plan to
involve its power groups, mainly coal-run, in KW's rescue.
Finding an investor for Brzeszcze was also a part of an
agreement signed at the start of the year between the government
and KW's trade unions, who threatened possible strikes.

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