Talks on sale of Parnu Soojus nearing end

  • 2000-08-17
TALLINN (BNS) - Talks on the sale of heating company Parnu Soojus are nearing completion, and a sales contract will probably be signed in October, the newspaper Parnu Postimees reports.

The city government is in negotiations over the sale of the municipal utility with SCA Dalkia, Fortum Energia, Vattenfall Estonia, Vantaa Energy Ltd. and Kotka Energy Ltd.

The Swedish Vattenfall AB acquired 96 percent of the shares in heating Ulejoe Soojusvork last year, the second heating company in this western city.

The possible selling price of Parnu Soojus is not known, as talks are being held with all the five potential buyers, and the city government is of the opinion that making the price public may place them in an unequal situation.

After an agreement on all conditions of the sale is reached, the winning bid will apparently be sent to the city council for approval, and a contract is expected to be signed in October.

The Parnu city government is going to reserve the right of veto in strategic issues concerning management of the heating company and will be able, if necessary, to block decisions detrimental to the city.