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Estonia: Vardar adviser says Eesti Energia offer was not highest

Estonian news - eteap June 6, 2018

Baltic News Service. 1st of June, 2018

Augusta & Co and Superia Corporate Finance, which acted as financial advisers to Vardar in the transaction to sell the Baltic green energy producer Nelja Energia, announced on Friday that the offer from the eventual buyer, Enefit Green, was not the highest offer and was chosen based more on transaction certainty.

“Augusta & Co and Superia Corporate Finance, acting as financial advisers to Vardar in the transaction, confirm that the sale process for Nelja Energiawas highly competitive, and that we were in receipt of other offers at similar or higher levels than the price agreed with Enefit Green,” the advisers said.

“The decision to proceed with Enefit Green in the end was based more on transaction certainty than on price, particularly in regards to the terms and conditions of the sale and purchase agreement,” they explained.

The Estonian state owned energy group Eesti Energia announced on Tuesday that its fully owned subsidiary Enefit Green AS, and Vardar Eurus and minority shareholders had signed an agreement regarding all the shares in Nelja Energia, and the consideration payable for the 100 percent of the shares of Nelja Energia amounted to 289 million euros. In addition, the buyer assumes Nelja Energia‘s net debt, which amounted to 204 million euros as at the end of 2017.

Postimees said on Friday that according to its estimates Eesti Energia paid on the average 25 percent more for Nelja Energia than was paid in some similar transactions in Europe of late. The report also said that all the other offers were lower than the offer made by Eesti Energia.

Nelja Energia owns 17 wind farms in Estonia and Lithuania with total capacity of 287 megawatts. In addition, the company owns a pellet factory and combined heat and power plant in Latvia and has minority ownership in two biogas stations in Estonia. Nelja Energia produced 761 gigawatt-hours of electricity from wind and 804 gigawatt-hours of renewable energy in total in 2017.

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