WARSAW, May 22 (Reuters) - Poland's biggest power producer state-run PGE PGE.WA has launched a public tender to take over its smaller rival Polenergia PEPP.WA , offering 16.29 zlotys ($4.48) per share, in a bid to strengthen its market position and cut emissions.
PGE said it intends to buy all 45.4 million Polenergia shares, which would value the transaction at around 740 million zlotys. Shares in Polenergia rose by 5.68 percent on Tuesday to 16.75 zlotys.
PGE, which produces most of its electricity from lignite and is one of Europe's biggest polluters, said the takeover would help it reduce carbon emissions due to Polenergia's portfolio of wind farms.
"Taking over Polenergia's assets would help PGE increase heat and electricity production, increase its share in the distribution sector and increase the wind portfolio," PGE said in a statement.
Polenergia is controlled by the Kulczyk family, one of Poland's richest, whose Kulczyk Investments company owns a 50.2-percent share.
Other shareholders in Polenergia include China-Central and Eastern Europe Investment Co-operation Fund, which has a 15.99-percent stake, as well as pension funds owned by Aviva (LON:AV), Nationale-Nederlanden and Generali (MI:GASI).
Kulczyk Investments declined to comment, while Polenergia was not immediately available.
Both PGE and Polenergia plan to build Poland's first offshore wind farms on the Baltic Sea. Their offshore projects are the most advanced in Poland.
Earlier this month Reuters reported that PGE has abandoned its leading role in plans to build Poland's first nuclear power station as it focuses on new wind farms in the Baltic Sea. ($1 = 3.6386 zlotys)