The Latvian state has taken control of the national gas transmission and storage operator Conexus Baltic Grid (Conexus) by acquiring Russian gas giant Gazprom's stake in the company, the Economics Ministry said Tuesday.
"With this deal, the state secures full control over gas transmission in the country, strengthening national energy security and promoting the gas system's further development in accordance with energy policy goals," the ministry said in a statement.
In the deal, state-owned transmission system operator Augstsprieguma Tikls acquired Gazprom's 34.1 percent stake in Conexus, increasing its stake in the company to 68.46 percent.
After the changes made in the structure of Conexus shareholders, Augstsprieguma Tikls, which until now held 34.36 percent in Conexus, will be managing the gas transmission and storage company together with MM Infrastructure Investments Europe Limited, which owns 29.06 percent of Conexus shares.
Gazprom auctioned its stake in Conexus at the end of 2019. The starting price of Gazprom's shares in Conexus was set at 79 million euros and the minimum price at 70 million euros.
After the auction, which was held electronically, it was reported that two bidders had joined the auction but the winner was not disclosed at that time.
Luxembourg-based Marguerite Fund, the other private shareholder in Conexus, said earlier it would sell its stake in the Latvian gas transmission and storage operator to a fund controlled by Japanese company Marubeni.
Gazprom and Marguerite Fund have to be disassociated from Conexus because they are also shareholders of Latvian gas utility Latvijas Gaze, and under European Union regulations, gas trade has to be separated from gas transmission and storage operations.
Editor:Cherie
