“The shareholders, of course, will want a bigger price and the politicians will find it difficult to explain to the voters why two-thirds of Lietuvos Dujos’ shares were sold to investors for 200 million litas (EUR 57.97 m) a decade ago and now the country has to pay several times more in order to buy out a part of the company from the same investors,” Vytautas Plunksnis, chairman of the board of the Lithuanian Investors’ Association, told the daily.
In his view, the country’s natural gas transmission pipelines might cost some 1 billion litas (EUR 289.85 m). He also does not rule out that the shareholders might decide to sell their stake in the transmission grid operator to other investors instead of the state.
“One of the methods is to determine the value of shares on the basis of Lietuvos Dujos’ capitalization, which is approximately 260 million euros now. However... these figures are unlikely to be used for evaluation. If using the replacement value, the price may be way too high,” Marius Dubnikovas, head of institutional sales at Finasta Bank, told the daily.
2012-05-29 10:32
Buyout of Lithuanian Gas' spin-off company may cost the state third of a billion euros
The operator of natural gas transmission pipeline that will be spun off Lietuvos Dujos (Lithuanian Gas) will probably be bought out from current shareholders of the Lithuanian gas imports and transportation company at a later date. Experts believe that the negotiations on the form of the takeover and the price will not be easy, the Verslo Žinios business daily reports.
Lietuvos dujos / LD nuotr.
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