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Eight Bidders Will Vie for Vattenfall’s Polish Assets

Eight bidders, including Penta Investments and private equity firm EQT, will vie for the Polish assets of Swedish utility Vattenfall, Reuters reported, estimating the size of the deal at up to 1.5 billion euros ($2.1 billion). Other bidders include French utility GdF, Polish utility Tauron and gas monopoly PGNiG, Reuters wrote. Bidders have until Monday evening to place their initial offers.

(Reuters) – Eight bidders are set to place bids for Swedish utility Vattenfall’s [VATN.UL] Polish assets in a sale that could fetch 1.5 billion euros ($2.1 billion), people familiar with the matter told Reuters on Monday.

The line-up is to include French utility GdF and its local rival EdF’s unit Dalkia, Czech companies EPH and Penta Investments, private equity firm EQT, Polish utility Tauron and gas monopoly PGNiG, as well as Poland’s richest man Jan Kulczyk.

Bidders have until Monday evening to place their initial offers for Vattenfall’s assets — an electricity distribution network in southern Poland as well as a heat and power plant in Warsaw.

EQT and EPH were not immediately available to comment, while the other potential bidders all declined to say whether they would place offers.

Several entities have expressed their interest in the various assets, including Finland’s Fortum and Poland’s top utility PGE , but none was willing to buy all of them.

The process is linked with the planned sale of Warsaw’s municipal heating distribution company SPEC, which could be worth some 1.5 billion zlotys ($538 million).

Analysts believe whoever buys Vattenfall’s heat and power unit in Warsaw would have the biggest chance of buying SPEC, and vice versa.

($1=.7083 euros)
($1=2.789 Zlotys)

(Reporting by Quentin Webb in London, Agnieszka Barteczko in Warsaw, Peter Dinkloh in Frankfurt and Marie Maitre in Paris; Writing by Adrian Krajewski; Editing by Greg Mahlich)