RIGA - The final preconditions for the completion of the transaction of sale of its subsidiary Gaso were met on Monday in line with an agreement signed in April 2023, and the change of ownership has been registered with the Latvian Commercial Register, with Estonia's Eesti Gaas becoming holder of 100 percent Gaso shares, according to Latvijas Gaz gas utility's statement to Nasdaq Riga.
Gaso is the only natural gas distribution operator in Latvia. Gaso operates independently of Latvijas Gaze and the change of ownership will not affect the provision of the companies’ services to Latvijas Gaze customers.
In the balance sheet, which is included in the first-quarter 2023 financial statement of Latvijas Gaze, the contribution to Gaso was included under current assets in the amount of EUR 122 million, while the equity of Latvijas Gaze as at March 31, 2023 amounted to EUR 319 million. Upon the completion of the transaction, Latvijas Gaze has received a payment that corresponds to the book value of the contribution.
Latvijas Gaze confirms that there are no current material contracts between it and Gaso and there are no court or arbitration proceedings that might substantially affect the commercial activity of this capital company.
The timely completion of the transaction enables Latvijas Gaze to responsibly prepare for the new 2023/2024 heating season and to decide on returning capital to shareholders at the shareholders’ meeting scheduled for July 27, 2023.
As reported, Latvijas Gaze in April signed a definitive agreement to sell Gaso to Estonian gas company Eesti Gaas.
For the transaction to be completed, a government approval was needed for the handover of national security assets and clearance from the competition authority.
Latvijas Gaze started the process of selling Gaso earlier this year, as under the current laws Gaso cannot be managed by Russian or Belarusian shareholders, but Latvijas Gaze has Russian shareholders.
In 2022, Gaso turned over EUR 52.46 million and sustained a loss of EUR 1.751 million.
Gaso is the only natural gas distribution system operator in Latvia. The company ensures the safety of gas networks, provides technical services and measures gas consumption. Gaso launched operations in December 2017. Its sole owner is Latvijas Gaze gas utility.