JSC Latvijas Gaze announces sale of subsidiary JSC Gaso to Eesti Gaas
April 14, 2023
Riga, Latvia - JSC Latvijas Gaze (GZE1R), one of the leaders in the Baltic energy industry, announced today that it has signed a definitive agreement to sell its wholly-owned subsidiary JSC GASO to JSC Eesti Gaas, the largest privately owned energy company in the Baltic and Finnish region.
The transaction will be completed, subject to the completion mechanics related to government approvals for allowing ownership of national security assets and clearance from competition authority. JSC Latvijas Gaze will receive a base equity consideration amounting to 120 million EUR and interest payable for the time until completion. The transaction is expected to close by the end of 2023, subject to customary closing conditions.
The sale is part of JSC Latvijas Gaze ongoing strategic plan to streamline its operations and focus on its core business - gas wholesale and retail trading. Our goal is to become the customers’ first choice among natural gas suppliers and provide the most reliable natural gas supply for the entire region.
"We are pleased to announce the sale of JSC GASO and believe this is a positive step for both Latvijas Gaze and GASO," said CEO of JSC Latvijas Gaze Aigars Kalvītis. "The sale allows us to concentrate our resources on our core business and create value for our shareholders."
"We see the future in natural gas and know how to run and grow this business. Gas is and remains a significant energy source in Latvia and this encourages us to invest. We hope that we can share our experience as an operator of the gas network and that the change of ownership will help the company to develop further and offer the best service to customers," said Ain Hanschmidt, Chairman of the Council of JSC Eesti Gaas.
JSC GASO is a sole gas distribution network company operating in Latvia. JSC Gaso complies with independence requirements for distribution operators as runs its operations independently from JSC Latvijas Gaze.
"We are confident that JSC Eesti Gaas is the right partner for JSC Gaso and we wish them every success in the future," added Aigars Kalvītis.
About Latvijas Gaze
JSC Latvijas Gaze is one of the leaders of the Baltic energy industry, operating in gas wholesale and retail trading in the Baltics and Finland.
JSC Latvijas Gaze was established in 1991 by merging the Latvian gas infrastructure and institutions. The main office is located in Riga, and since February 15, 1999, the shares of the JSC Latvijas Gaze”have been quoted on the Nasdaq Riga stock exchange (GZE1R).
For more information, please contact:
Sandra Joksta
phone 369
About JSC Eesti Gaas
JSC Eesti Gaas operates in Finland, Latvia, Lithuania and Poland under the Elenger brand name. JSC Eesti Gaas offers customers natural gas in the form of pipeline gas, compressed natural gas (CNG) and liquefied natural gas (LNG) and operates Estonia’s largest gas network. The company is actively engaged in international energy trade and develops a renewable energy portfolio in the form of solar energy and biomethane production and sales.
JSC Infortar, the owner of JSC Eesti Gaas, operates in five countries, the company's main fields of activity are energy, shipping and real estate. The balance sheet volume of Infortar reaches 1.1 billion. The Infortar Group has a total of 47 subsidiaries. Infortar owns a 41% stake in JSC Tallink Grupp, a 100% stake in JSC Eesti Gaas and a versatile and modern real estate portfolio.
For more information, please contact:
Margus Kaasik
Chairman of the Management Board of Eesti Gaas
phone
Forward-Looking Statements
This information contains forward-looking statements. These statements are based on JSC Latvijas Gaze current expectations or beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. JSC Latvijas Gaze does not undertake any obligation to update any forward-looking statements to reflect events or circumstances after the date on which they were made, except as required by law.
