Energy, Estonia, Gas, Legislation, Mergers and take-overs

As a result of the merger, AS Vorguteenus Valdus and Elering Gaas AS were dissolved and Elering AS will continue its business activities as the joint electricity and gas system operator, Elering told the London stock exchange.

The agreements on the merger of Elering AS, Vorguteenus Valdus and Elering Gaas AS were signed on Dec. 15, 2015 and the merger procedure was completed on March 1, 2016.

The signing of the merger agreement was preceded by a takeover of 0.86% of the shares of Vorguteenus Valdus on December 11 as a result of which all shares of Vorguteenus Valdus belong to Elering.

The general meeting of Elering at the end of 2014 endorsed a mandate for Elering to acquire Vorguteenus Valdus AS, owner of the Elering Gaas AS company that owns the gas transmission network, for up to 53.66 million euros. As reasons for the move, Elering cited economic advisability and considerations of national security, as at the time when the decision was made the co-shareholders of Vorguteenus Valdus included the Russian Gazprom and the Latvian company Itera Latvija controlled by Rosneft.