Enya – Lubelski Vigil Bogdanka. Inna did not accept the State Treasury’s offer, and negotiations are continuing

In August 2023, Enea received an offer from the State Treasury, represented by the Minister of State Assets, Jacek Sasin, to purchase a block of 21,962,189 shares in Lubelski Węgiel Bogdanka at a price of PLN 45 per share. The total amount of the transaction will amount to approximately PLN 988.3 million. As reported, according to the offer, the price of the block of Bogdanka shares owned by Enea will be settled in the form of treasury bonds transferred via the re-privatization fund.

Lubelski Węgiel Bogdanka Capital Group – as we read on the company’s website – is one of the largest hard coal producers in Poland.

In its semi-annual report published on Thursday, Enea provided new information about the potential deal.

“The net asset value of CGU Wydobycie (LW Bogdanka) resulting from the quote obtained is less than the book value and less than the fair value of CGU Wydobycie estimated by the Board of Directors and is therefore unsatisfactory and has not been accepted,” Enea wrote in the semi-report. Annual.

As shown, although Bogdanka’s current share price is around PLN 33 per share, this value exceeded PLN 50 in January. “In the opinion of the Board, the above circumstances and the factors below mean that the use of the current stock market value as an indicator of the fair value of LWB is not justified,” the letter said.

Therefore, the Board estimated the recoverable amount of CGU Wydobycie at fair value less disposal costs.

“Taking into account the analyzes carried out and the report obtained on the estimate of the market value of LWB shares (prepared by Pekao Investment Banking on September 11, 2023), the Board of Directors considers a valuation of at least PLN 72.28 per share. Enea said in the report: “It is reasonable and, as part of the negotiations, will endeavor to sell the shares at a level that takes into account this valuation.”

The process is ongoing, and we do not wish to comment on it excessively. We know the basis for our assessment of the fair value of the securities we hold and the assets we have in the Enea Group. (…) I assume that the offer we received was largely based on the current value of the exchange rate – said Rafael Mucha, Vice President of Enea, at a press conference on Thursday.

He added that price volatility is high, and from Enea’s point of view, it is not possible to rely on a point-by-point indication of the value of a stock at a given moment.

The company is bound by a letter of intent with the state treasury until the end of 2023, “which makes it clear that we want to sell Bogdanka shares,” Mucha said. – The process is continuing, let it take its course – he confirmed. We did not accept or reject the offer. “We are in the negotiation process,” Enea’s vice president added.

Bogdanka ended Thursday’s session on the Warsaw Stock Exchange with an increase of 7.42%. The company’s share price is PLN 35.90. Enea’s price rose by 1.13%. Up to PLN 7.58 per share.