Strategic investment in Lietuvos Dujos will allow offering more value for customers
Having acquired additional 38.9 per cent of shares of Lietuvos Dujos, the state-run energy group Lietuvos Energija will own two companies providing services to residents and businesses - the synergy will allow offering better services and customer service to electricity and gas consumers, coordinated business activities will allow achieving greater efficiency and increasing operating results. The remaining shareholders of Lietuvos Dujos will be offered to sell their shares.
On May 21, Lietuvos Energija, UAB signed contracts with German concern E.ON Ruhrgas International, in accordance with which it will take over 38.9 per cent of shares of natural gas supplier and distributor Lietuvos Dujos and 11.76 per cent of shares of electricity distribution network operator LESTO. The total price of the share package is EUR 97.57 million (LTL 336.9 million). After this transaction the group will own more than half of shares of Lietuvos Dujos.
“By acquiring shares of Lietuvos Dujos, Lietuvos Energija is making a strategic investment. The natural gas supply activity is analogous to the electricity supply activity, all gas consumers also being electricity consumers, thus we value synergy opportunities allowing to increase the efficiency of activities and improve the quality of the services provided” - said Dr. Dalius Misiūnas, Chairman of the Board and CEO of parent company of the group Lietuvos Energija, UAB.
Dalius Misiūnas claimed that transparent management and coordination of activities of the company will allow achieving better operating results, while increased efficiency should also be reflected in the price of services in the long run. “Meanwhile, the agreement reached with Gazprom on a lower gas acquisition price will allow offering cheaper natural gas for customers of Lietuvos Dujos in the nearest future”, – he said.
During the negotiations, an agreement on a payment in the amount of EUR 12.7 million (LTL 43.85 million) to be made by E.ON Ruhrgas International to Lithuania, which was provided for in privatization agreement of AB Lietuvos Dujos of 2002, but disputed and held off later on, was reached; this amount will be transferred to the Lithuanian budget.
Favourable purchase price
The acquisition of shares of LESTO and Lietuvos Dujos is a rational investment for the company - the price paid is 26 per cent lower as compared to the average price of shares on the stock exchange for the last 6 months, which was EUR 132.3 million. Ensuring continued good operating results, this transaction will also be financially beneficial to Lietuvos Energija Group and the state of Lithuania” - said Dalius Misiūnas.
The price of the package of 38.9 per cent of shares of Lietuvos Dujos agreed upon in the agreement is EUR 63.43 million (LTL 219.01 million), while of 11.76 per cent of shares of LESTO - EUR 34.14 million (LTL 117.89 million). By comparison, the value of such package of shares of AB Lietuvos Dujos on the stock exchange Nasdaq OMX Vilnius for 6 months amounts to the average of EUR 73.8 million, while that of shares of LESTO - EUR 58.6 million.
Pursuant to the Law on Securities, having exceeded the limit of one-third of votes after this transaction, Lietuvos Energija will make a mandatory tender offer for the buy-up of the remaining shares of Lietuvos Dujos owned by OAO Gazprom and minority shareholders. Since Lietuvos Energija has purchased the shares cheaper than their price in the market, a mandatory tender offer will be made for an average weighted 6 month market price effective before the date of exceeding the vote limit.
Shares of LESTO and Lietuvos Dujos are quoted on Nasdaq OMX Vilnius stock exchange. Even though at the time of an official offer number of shares available on the market may decrease, Lietuvos Energija plans to propose new investment opportunities for minority shareholders and other investors in the nearest future, thus increasing the liquidity of shares and attracting more shareholders to companies owned by the group”– said Dalius Misiūnas.
37.1 per cent of shares of Lietuvos Dujos are owned by OAO Gazprom, 6.3 per cent - by minority shareholders. Minority shareholders own 5.61 per cent of shares of LESTO.
