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Eesti Energia to buy Nelja Energia – the biggest wind power producer in the Baltic States

EWPA's blog - eteap May 29, 2018

On 29thof May 2018 Vardar Eurus AS and minority shareholders of Nelja Energia, entered into a Share Purchase Agreement with Eesti Energia AS’s subsidiary Enefit Green AS, which may lead to change of ownership of all shares of the company.

The consideration payable for 100% of the shares of Nelja Energia amounts to 289 million EUR. In addition, Enefit Green will take over the loans of Nelja Energia. The total sum of the deal is 493 million euros.



The CEO of Eesti Energia, Hando Sutter, said that the strategic goal of Eesti Energia is to increase the share of electricity produced from renewable and alternative sources to 40 percent in the group’s production portfolio by 2022.

“Besides the construction of new production units, one more way to achieve that goal is to acquire suitable companies. When a message about Vardar selling Nelja Energia came up at the beginning of the year, we were interested, because this would help us implement our strategy,” Sutter said. He added that given the intention expressed by the government to list minority shares in Enefit Green, everybody will be able become part of the growth of the company in the future.

Martin Kruus, the CEO of Nelja Energia said that the shares of Nelja Energia have not been handed over to Enefit Green yet. “The transaction still needs approval by the County Executive Board of Buskerud County Administration, customary approvals and clearances by relevant competition authorities and final verification of the terms of the agreement incl price. Until then our daily operations continue as usual,” said Kruus.

The aquicition was commented also by the CEO of Vardar, Thorleif Leifsen, the CEO of Vardar: “Owning Nelja Energia was a success story for us, but according to the strategy of the owner, we are exiting the businesses situated abroad. Vardar’s owners have decided to focus on hydro power in Norway and the development of power production in this country. This deal will help us implement the new strategy.”

Nelja Energia is the largest producer of renewable energy in the Baltic States owning 17 wind farms in Estonia and Lithuania with a total capacity of 287 MW. In addition, Nelja Energia opened last year a biomass combined heat and power plant with electrical capacity of 3,9 MW and pellet factory with annual production of 140 000 tons. Also, Nelja Energia has a minority share in two biogas power and heat cogeneration plants in Estonia. In 2017, Nelja Energia produced 804 GWh of renewable electricity.

The transaction concerns 100% of the shares of Nelja Energia AS. Vardar AS has agreed (through its subsidiary Vardar Eurus AS) to sell its 77% holding of the shares in Nelja Energia. The remaining 23% of the shares is acquired from a number of Estonia based investors –Solarcom OÜ (Martin Kruus) and Atradius OÜ (Kalle Kiigske), both belonging to the management, Ivard OÜ (Peeter Mänd), Vestman Energia AS (Aivar Berzin), JMB Investeeringute OÜ (Jüri Mõis), HTB Investeeringute OÜ (Hannes Tamjärv) as well as from Ambient Sound Investments OÜ, United Partners Investments OÜ ja Kakssada Kakskümmend Volti OÜ.


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