EPH’s statement on the acquisition of a 50% stake in Mibrag from ČEZ
28. 7. 2011
ENERGETICKÝ A PRŮMYSLOVÝ HOLDING (EPH) confirms that it is buying a 50% stake in MIBRAG from the ČEZ Group, although approvals of this transaction still need to be obtained from the relevant anti-monopoly authorities. “Despite the current instability of the regulatory framework for the German energy sector, which is producing a number of uncertainties also for MIBRAG, we appreciate this opportunity to accept the position as a single shareholder in MIBRAG. Our role is to help to maintain long-term and successful prospects for MIBRAG,” said Daniel Křetínský, EPH Chairman.
“By taking over full ownership of the coal extraction company MIBRAG, EPH will strengthen one of the strategic pillars of its operations in the energy sector and confirm its position of an integrated energy utility that includes all segments, ranging from coal extraction to energy sales to end customers,” noted Mr Křetínský.
MIBRAG (i.e., in fact EPH’s current 50% stake in MIBRAG) is a part of the EP ENERGY energy subgroup, which is a subsidiary of EPH. The EP ENERGY subgroup was formed at the beginning of this year as a conventional energy company having the nature of an integrated utility, which will also be ready for issuing international bonds.
MIBRAG includes a brown coal mine in the central German coal basin near Leipzig. MIBRAG owns and operates two open-cast coal mines, Profen and Vereinigten Schleenhain, with a total annual production of brown coal of almost 20 million tonnes. The company also owns three cogeneration plants at Deuben, Mumsdorf and Wählitz having a total installed electrical capacity of 208 MW.
The EPH Group also includes the hard coal company PG SILESIA in Poland.
EPH, i.e., its EP ENERGY subgroup, is a strategic investor in the energy sector. With its supply of 22 PJ for a total of more than 360,000 households, it is the most important heat supplier in the Czech Republic. EPH (i.e., EP ENERGY) is also the country’s second largest electricity producer with its annual production (including the MIBRAG capacities) amounting to approximately 5.4 TWh.
The total installed capacity of the plants controlled by the EPH Group (i.e., EP ENERGY) is currently 1,404 MWe for electricity production and 5,664 MWt for heat production.
EPH currently includes more than 20 companies operating in coal extraction, electricity and heat production, heat distribution, electricity and gas trading, including sales to end customers, electricity installation services, and other related fields.