1.4 Settlement of the new acquisitions

On July 31, 2020 PGE EO purchased from FEN Wind Farm B.V.  100% of shares in ECO-POWER sp. z o.o. ECO-POWER owns a wind farm commissioned in 2015 and consisting of 12 wind turbines with a total capacity of 36 MW.

In accordance with the requirements of IFRS 3 Business combinations, an analysis was performed to determine whether the acquired assets and liabilities meet the definition of a business and the transaction should be accounted for under IFRS 3 as a business combination, or whether the acquired assets do not constitute a business and the transaction should be accounted for as an asset acquisition.

Following a concentration test, the Group concluded that the transaction constituted an asset acquisition and was recognised as such in these consolidated financial statements.

The total value of cash transferred under the transaction amounted to PLN 150 million. The acquired assets are fixed assets, mainly wind towers with foundations and earthing, access roads and individual elements of wind farm equipment such as turbines, masts and rotor blades.

On July 1, 2020 a capital increase in PIMERGE S.A. was registered. As a result of the capital increase, the shareholding of PGE CG increased from 42.37% to 89.87% and PIMERGE S.A. became an entity subject to consolidation.

As a result of the settlement of the acquisition, PGE CG recognised goodwill in the amount of PLN 2 million (net assets of PLN 1 million were acquired for PLN 3 million).