A consortium of Severočeské doly Chomutov (a brown coal mining company), member of the CEZ Group, and J&T Group won the tender for 100 % share in German coal mining company MIBRAG. The total value of the transaction reached EUR 404 mil.
Severočeské doly Chomutov and J&T Group signed today a share purchase agreement to acquire 100 % of MIBRAG from two U.S. companies, URS Corporation and NRG Energy Inc.
The transaction is expected to be completed after the approval of European Commission not sooner than in the second quarter of 2009. MIBRAG will be owned by a joint venture company where Severočeské doly Chomutov and J&T Group will hold equal stakes.
Daniel Beneš, Chairman of the Supervisory Board of Severočeské doly Chomutov and 1st ViceChairman of the CEZ Board, said "Acquisition of MIBRAG by Severočeské doly is very important for the whole CEZ Group. It means further development in our business in Germany where we are now active in the trading business on wholesale market."
"The company cultures in both companies are very similar as the German and the Czech miners have had close relationships for centuries. MIBRAG has very good management and the company has stable portfolio of longterm supply contracts with respectable customers, which makes the sales of the company well secured," added Jan Demjanovič, Chairman of the Board and CEO of Severočeské doly Chomutov.
"The MIBRAG acquisition marks an important step in pursuing our long - term strategy of strengthening our position in energy sector and completes J&T Group activities portfolio by adding significant coal mining operations," commented Daniel Křetínský, partner of J&T Group. "We highly appreciate MIBRAG as a very reputable, stable and efficient company. We are committed to build on MIBRAG´s best traditions and support its further development."
MIBRAG extracts brown coal in central German brown-coal basin near Leipzig. It owns and operates two opencast coal pits Profen and United Schleenhain, with combined annual production of 19 million tons. Proven reserves in current coal mines are around 530 million tons of lignite, with significant expansion options. MIBRAG also owns and operates 3 combined heat and power plants with total installed capacity of 208 MWe. In 2008, MIBRAG´s generation fleet produced 1.4 TWh of electricity and over 2 000 TJ of heat. MIBRAG also runs coal dust processing factory. More information about MIBRAG is available on its website www.mibrag.de.
Contacts for media:
CEZ Group J&T Group
Eva Nováková Martin Maňák
Press Officer Director of J&T Group Communication
ČEZ for Energy Sector
Tel.: +420 211042291 Tel.: +420 221710163
Mobil: +420 606740479 Mobil: +420 606648659
Mail: eva.novakova@cez.cz Mail: manak@jtfg.com
CEZ Group
Vladimír Budínský
Director for Strategy and Communication
Severočeské doly, a. s. Chomutov
Tel.: +420 724082663
Mail: budinsky@sdas.cz