Lithuanian gas privatization continues

The Lithuanian government has agreed to launch the second stage in the privatization of Lietuvos Dujos the Lithuanian gas utility, and has begun distributing promotional material to potential bidders for the 34 percent stake.

The initial price of the block of shares has yet to be announced. Pre-qualification applications are invited by July 15, initial bids must be submitted by Sept. 11, and final offers must be put forward by Nov. 12.

A German consortium of E.ON Energia and Ruhrgas is due to purchase the first 34 percent stake in June and is reportedly ready to pay 116 million litas ($31.69 million) for the 34 percent stake immediately, with another 34 million litas to be paid in the coming six years - provided Lithuania complies with its requirements concerning gas prices.

Ruhrgas is reportedly interested in sharing ownership with Russia's Gazprom, which is likely to be a bidder for the second stake.

If all goes to plan private investors will hold 68 percent of shares in the utility while the government will retain a 24.36 percent stake.