Latvenergo JSC has expressed an interest in acquiring Latvijas gāze JSC subsidiary Gaso JSC, as reported by LTV programme De Facto.
The first time Latvenergo expressed an interest in Gaso was shortly after its separation from Latvijas gāze. The company had detailed talks with one of Latvijas gāze’s shareholders for possible acquisition of company shares. Former Minister of Economics Ralfs Nemiro told the programme that the option for Latvenergo to acquire the gas distribution system through Latvijas gāze was discussed at the time. This issue was left from the previous government.
According to Nemiro, there were multiple counter arguments against the deal. This included forecasts for gas consumption going down, as well as Latvenergo becoming Latvijas gāze’s shareholder alongside Gazprom.
«The gas market currently shows a declining trend rather than a growing trend.
The second topic: should Latvian state participate in the purchase of capital shares of the gas trade company? […]
These factors made officials look at this topic rather negatively,» Nemiro told the programme.
Recently Latvijas gāze has reached out to Latvenergo as a potential Gaso buyer, as reported by De Facto. Minister of Economics Ilze Indriksone confirmed that last year there were discussions about Latvenergo potentially acquiring Gaso. According to her, such a step would bring multiple benefits.
Latvenergo, however, was not given any orders from the Ministry of Economics, which is the company’s shareholder. Indriksone said the company can decide on its own if it wants to acquire Gaso.
At the same time, she added that the decision who should get Gaso is in Latvijas gāze’s hands.
This week Latvijas gāze announced having talked with several potential investors. They are now sending in specific offers. The decision to sell infrastructure will be made by the Council of Latvijas gāze. However, Latvia’s government will be able to halt the deal if the buyer does not comply with requirements of the National Security Law.
It is planned for proposals regarding investors to come this month.
As previously reported, last year the Council of Latvijas gāze made the decision to organise Gaso’s sale and attract a consultant. The sale process is planned to be completed this year.
Latvijas gāze board chairman Aigars Kalvītis explained in a previous interview that in accordance with existing regulations, Gaso cannot be managed by Russian or Belarusian shareholders. On top of that, because Latvijas gāze has shareholders representing Russia, Gaso should be sold.
Gaso is the only natural gas distribution system operator in Latvia. The company provides security of the natural gas network, technical services and keeps records of gas consumption in the country. Gaso was founded at the end of 2017 by separating Latvijas gāze’s distribution system and implementing EU and state requirements to ensure independence of the natural gas distribution system.
The company’s base capital is EUR 39.9 million, according to information from Firmas.lv. Latvijas gāze is Gaso’s sole shareholder.
Latvijas gāze’s biggest shareholders include Russia’s Gazprom (34%), Marguerite Gas II.S.a.r.l. (28,97%), German Uniper Ruhrgas International GmbH (18,26%) and Itera Latvija LLC (16%).
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