Energy, Estonia, Legislation, Mergers and take-overs

AS Elwo and Leonhard Weiss Energy AS have concluded an agreement on the purchase and sale of assets whereby Leonhard Weiss Energy will take over the assets, rights, obligations, contracts and workforce of Elwo.

"For AS Elwo the financial year 2015 turned out difficult, as the company lost more than 15 percent of its sales during the financial year. Despite significant cost-saving efforts, the company made a loss. In connection with this AS ELWO has decided to leave the market and divest the assets necessary for the exercise of its core business," it stands in the notice of consolidation.

Sales of AS Elwo totaled 2.8 million euros in 2014, compared with 5.4 million euros in 2013. The company finished the year 2014 with a net loss of 89,400 euros. At the end of 2014, the company's balance sheet total was 921,700 euros, it employed a workforce of 58 and wage costs amounted to 700,345 euros.

Leonhard Weiss is active in two lines of business in Estonia, with Leonhard Weiss RTE and Leonhard Weiss Viater Ehitus active in roadbuilding, including the construction and maintenance of railways and tramlines. Leonhard Weiss Energy is active in the design, construction and maintenance of power networks.

Leonhard Weiss Energy was established in 2014 when Leonhard Weiss acquired the Eesti Energia Vorguehituse AS network building company of the state-owned energy group Eesti Energia for seven million euros.