Romania: Transgaz wants to sell Vestmoldtransgaz to EBRD, SEE Energy News
Romanian natural gas transmission system operator Transgaz plants to sell its Moldovan subsidiary Vestmoldtransgaz. Transgaz is asking its shareholders for the approval of the sale of 25 % stake in Vestmoldtransgaz to the European Bank for the Reconstruction and Development (EBRD) for 20 million euros.
The statement from the company said that the transaction consists of a capital increase for Vestmoldtransgaz to which the EBRD will contribute 20 million euros. Eurotransgaz, a company owned by Transgaz in Moldova, and Transgaz will jointly undertake the obligation to buy from EBRD its stake in Vestmoldtransgaz at a predetermined price when the bank exercises its participation interest put option in Vestmoldtransgaz. Transgaz’ shareholders will vote on this proposal on 5 October.
Transgaz bought Vestmoldtransgaz through Eurotransgaz in September 2018 for 8.8 million euros. Vestmoldtransgaz operates the gas transmission link between Moldova’s Ungheni and Romania’s Iasi, with a further connection point to Moldova’s capital Chisinau nearing completion.