JSC Latvijas Gaze (GZE1R), one of the leaders in the Baltic energy industry, announced 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 Kalvitis. "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 Kalvitis.