Indoverse qualifies for the second round of PPC’s tender for Megalopoli and Meliti lignite power units
Athens, July 3rd 2018 - INDOVERSE (CZECH) COAL INVESTMENTS LIMITED, member company of Seven Energy Group, has qualified, based on the decision made by PPC’s BoD on July 3rd, for the second round of the international tender for the spin-off of the Corporation’s lignite power units in Megalopoli and Meliti.
In particular, following the submission, on June 21st, of a letter of interest and its evaluation by PPC’s advisers, Indoverse was selected among the bidders that meet the conditions for making it onto the shortlist of contenders that will submit a binding offer. The company’s participation in the tender for the sale of the two units is in line with Seven Energy Group’s objective and long-term strategic approach to grow internationally and expand its European asset base. To this end, the Group has announced that it will deploy EUR 1 billion in integrating highly efficient and flexible power generation assets across Central and Western Europe to its portfolio, operating and developing them for the long-term, while all the time assessing available options to modernize and innovate.
Seven Energy Group is a well-established international player, which, following a well-defined strategy over the past years, has developed from a lignite mining company into the major Czech utility it is today. The core mission and vision of Seven Energy Group is to provide a safe and reliable supply of electricity to its customers, at the same time contributing to the affordability of energy sources. The Group operates on the firm assumption that energy systems operating with growing shares of volatile renewable electricity generation require flexible and reliable assets to (1) provide a robust and currently indispensable complement to those renewable assets in the overall energy mix and to (2) support the curbing of electricity prices for industrial and household consumers.
Seven Energy Group has a strong track record of operating lignite mines as well as operating and upgrading fossil-fuelled power generation assets – the Group’s total investment in the specific field during the recent years reaches EUR 184 million. The Group is financially robust, with a consolidated balance sheet, which, as of 31 December 2017, amounted to approximately EUR 850 million. For 2017, the consolidated revenues were approx. EUR 560 million, with an EBITDA of approx. EUR 140 million.
Besides its financial strength, Seven Energy Group puts a strong focus on adherence to environmental standards and invests into the efficiency of its sites to make them as clean and green as possible, minimizing air pollution, emissions and waste. The Group has spent approximately EUR 56 million on remedial works in relation to its assets and holds additional approx. EUR 106 million in cash for future investment for such purposes. Seven Energy Group’s close ties with all relevant stakeholders on the local level – be it employees, local municipalities or citizens living in the vicinity of extraction sites or power stations – are a further key to the smooth operation of its sites. Aiming to build trust and enhance good relations, the Group always pursues the establishment of a transparent and constructive dialogue with all internal and external stakeholders.
Commenting on the qualification of Indoverse for the second phase of the tender, Alan Svoboda, Executive Director, Seven Energy, noted: “At Seven Energy we are well aware of the profound transformation of the Greek energy market and are convinced that, thanks to our unique operational and technical expertise and financial strength, we have a lot to contribute to bridging the energy world of today and the energy world of tomorrow. At the core of our interest in the two units in Megalopoli and Meliti lies our clear vision about their upgrade and increase of their efficiency in a way that will safeguard the continuation of their operation in the coming years, for the benefit of their employees, local communities and, ultimately, Greek consumers. We are optimistic that our proposal, developed with a forward-looking approach and a philosophy that aims at building trust, will be positively assessed both by PPC as the decision maker for the process and by all relevant stakeholder groups”.
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