On 4 August the Management Board of TAURON Polska Energia unanimously adopted the decision defining the borderline conditions for the purchase of a part of KWK Brzeszcze assets, based on which a new coal mine will be established. On the basis of results of the analyses and recommendations of company advisers, as well as due to the risk of return of the illegal public aid, the tender will be submitted only in case of assets sales by SRK under the public procurement procedure. The key issue is also the performance of the restructuring process of those assets by SRK.
TAURON' s tender will amount to the "symbolic zloty" and it will be submitted by a special purpose vehicle (SPV) to be acceded by partners, including Małopolska Agencja Rozwoju Regionalnego (Regional Development Agency of Małopolska Province), which will enable to conduct the transaction outside the balance sheet of TAURON Group.
The tender will be submitted following signing of the agreement between partners, defining the basic terms of the common investment. Subsequently, prior to the date of concluding of the final agreement on the purchase of a part of KWK Brzeszcze assets by the special purpose vehicle, it will be necessary to sign the agreement joining SPV partners, to settle, inter alia, the issue of mutual obligations.
Prior to the day of concluding the final purchasing agreement by the special purpose vehicle, SRK should implement the restructuring programme of KWK Brzeszcze assets comprising, in particular: reducing of the permanent employment level to 828 FTEs, employment of up to 715 persons in the form of outsourcing, change of the current remuneration system to incentive-based (on average, c.a. PLN 5,000 of the basic salary and the floating component depending on the results achieved), incurring of previously planned - in connection with the separation of assets - required expenses on the ventilation system.
The basis for filing the tender for the purchase of a part of assets are the opinions and reports prepared by Tauron's advisors that define the aforementioned minimum requirements for project viability in the years 2016-2018 at a level of PLN 253 million and assume the target annual output of approximately 1.5 million tons starting from 2017.
In the opinion of Tauron and its partners, only the fulfilment of the above conditions may guarantee the viability of the project and operation of a new coal mine in Brzeszcze.
Purchase of some assets of the KWK Brzeszcze mine by the special purpose vehicle will take place provided that the consent of the Supervisory Board of TAURON Polska Energia is obtained.
