Poland to buy Tauron's coal mining assets
GDAŃSK, Oct 12 (Reuters) - Polish utility Tauron (TPE.WA) said on Wednesday it will sell its coal mining subsidiary to Poland's Ministry of State Assets for a symbolic price of 1 zloty ($0.1999) as it pushes on with its green transformation.
Tauron said last month it received an offer for Tauron Wydobycie, which encompasses mines Sobieski, Janina and Brzeszcze. Its "symbolic" valuation is based on the current state of the mines as well as their long-term capital needs, according to the government's plans.
Tauron added that the sale of the mining assets will increase the possibilities to secure financing for the expansion of its renewables portfolio and investments in power grids.
"The need to separate mines from the Group's structures is a consequence of the tightening policy of financial institutions in the area of financing companies with coal assets," Tauron Chief Executive Pawel Szczeszek said in a statement.
Poland's government has been pushing a plan to carve out the coal assets of state-controlled utilities PGE (PGE.WA), Tauron and Enea (ENAE.WA) into a single entity to boost the investment potential of the utilities.
($1 = 5.0029 zlotys)
Our Standards: The Thomson Reuters Trust Principles.