Elenger parent company signs agreement to purchase Latvian gas network
Eesti Gaas, the parent company of OY Elenger, has signed an agreement to acquire the Latvian gas distribution network owned by Gaso, a subsidiary of Latvijas Gaze, for 120 million euros.
The completion of the transaction is subject to approval from the Latvian Competition Authority and permission from the Latvian government, as Gaso is considered a strategic asset.
“We see potential in natural gas and know how to run and grow this business. Gas is and remains a significant energy source in our region and this encourages us to invest in the Latvian market. 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 Eesti Gaas.
Eesti Gaas operates in Finland, Latvia, Lithuania and Poland under the Elenger brand name. The company provides natural gas to customers in the form of pipeline gas, compressed natural gas (CNG) and liquefied natural gas (LNG) and operates the largest gas network in Estonia. 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.
Infortar, the 100% owner of 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 euros. The Infortar Group has a total of 47 subsidiaries. Infortar owns a 41% stake in Tallink Grupp and a versatile and modern real estate portfolio.