Moody’s reviews Energa for trim

Moody’s Investors Service said it placed on review for downgrade the Baa1 issuer rating of Energa SA. Concurrently, Moody’s placed on review for downgrade the Baa1 backed senior unsecured ratings.

The rating review follows the Dec. 5 announcement by the listed Polish group Polski Koncern Naftowy Orlen SA that it intends to acquire all Energa’s outstanding shares through a tender.

PKN Orlen, which currently does not own any Energa shares, offers PLN 7 per share to Energa’s shareholders, or about PLN 2.9 billion for all shares. PKN Orlen will accept tendered shares if at least 66% of voting rights are tendered during the subscription period which runs from Jan. 31 to April 9. The stated rationale for the bid is PKN Orlen’s intention to create an integrated multi-utility corporation to reap efficiency gains and to ensure better resistance of the merged business to market volatility and other risks in the light of ever more competitive fuel and energy markets, Moody’s said.

“The review for downgrade reflects Moody’s expectation that, should the acquisition be completed, the credit profile of Energa’s new majority shareholder PKN Orlen may act as a constraint on Energa’s rating,” Moody’s said in a press release. PKN Orlen is rated Baa2.

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