WARSAW, July 21 Poland's richest man Jan Kulczyk
will combine his Polish energy assets under PEP to
forge the country's largest private utility, the group said.
Kulczyk will raise his holding in PEP and a China-backed
fund will take a minority stake.
PEP will change its name to Polenergia and expand its
renewable energy production with energy produced from coal. It
will also add a gas-fired unit producing electricity and heat,
and gas and electricity distribution.
Kulczyk will add his other energy assets to PEP in return
for shares, raising his stake from to around 65 percent of the
enlarged Polenergia group from 60 percent.
CEE Equity Partners agreed to buy a 16-percent stake for 240
million zlotys ($78.3 million) in its first transaction.
Set up this year, the fund is an adviser to Export-Import
Bank of China's China-CEE Fund.
The two transactions value PEP's shares at 33.03 zlotys
each, or a third higher than their Friday market close. The
price pegs the future Polenergia's market cap at 1.5 billion
zlotys, or three times the market value of PEP.
The group plans another share issue around the end of 2014
to finance its wind farm projects and a planned gas link between
Poland and Germany. Polenergia will pay dividends from 2017.
The plans will be voted on at PEP's upcoming shareholder
meeting planned for August 18.
($1 = 3.0653 Polish zlotys)
(Reporting by Adrian Krajewski; editing by Jason Neely)