Process of share buyout in Latvijas Gaze could be completed within six months or year - Kalvitis

RIGA - Energy Investments, a special purpose vehicle for the board members of Latvijas Gaze, could complete the redemption of shares held by the other major shareholders of Latvijas Gaze within six months or a year, Aigars Kalvitis, Chairman of the Board of Latvijas Gaze, told LETA.

Asked about the status of the buyout of shares from German state-owned Uniper Ruhrgas International and Itera Latvija, Kalvitis said that the negotiation process was ongoing, but he could not say when it would be completed. "It could be half a year, it could be a year," said Kalvitis.

Asked about his statement last November that the process could be completed in April, he said that the process would definitely not be completed in April.

As reported, last November Kalvitis said in an interview with Latvian Radio that the buyout of the shares of Latvijas Gaze was planned to be completed in April 2025.

In his words, a process was under way in which Latvijas Gaze shares were being consolidated into Energy Investments. "We are not going to sell them. We also want to buy shares from the German state-run enterprise Uniper Ruhrgas International and also from Itera Latvija, to thereby gain full control over Latvijas Gaze," Kalvitis said.

Kalvitis also mentioned that the first round of negotiations with Uniper Ruhrgas International was concluded in the first half of last year and that a second round of negotiations was underway, which could be concluded in the first quarter of 2025. Negotiations had also started with Itera Latvija, with Energy Investments planning to complete them by December 31 last year.

It was also reported that in the autumn of 2023, 28.97 percent of the shares in Latvijas Gaze were bought back from the Luxembourg investment fund Marguerite Gas II S.A.R.L. by Energy Investments. The transaction was carried out with the support of Rietumu Banka.

As LETA also reported, 27.85 percent of Gazprom's shares in Latvijas Gaze were bought back by Energy Investment and 6.15 percent - by Lithuanian company Haupas. According to Firmas.lv, Energy Investments shareholders are Chairman of the Management Board of Latvijas Gaze Aigars Kalvitis (70 percent), Egils Lapsalis (15 percent) and Elita Dreimane (15 percent).

According to the company's representatives, Energy Investments has taken the next important step in the management buy-back process. Kalvitis informed that the management buy-back process has resulted in the acquisition of control over approximately 63 percent of the shares in Latvijas Gaze.

In 2023, Latvijas Gaze group's turnover was EUR 159.819 million, 4.4 times less than in 2022, when natural gas prices experienced a huge increase and the company made a loss of EUR 56.911 million, compared to a profit of EUR 56.911 million the year before.