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The Estonian Competition Authority gave permission for Enefit Green, Eesti Energia’s renewable energy company, to complete the acquisition of Nelja Energia

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Hando Sutter, the head of Eesti Energia, said that the purchase of Nelja Energia is in line with Eesti Energia’s strategic objective of increasing the production of electric power from renewable sources. “Our target for 2022 is to produce 40% of electricity from renewable and alternative sources; this constitutes multiple growth compared to current levels and is a pretty ambitious goal. At the same time, all the Baltic Sea countries are increasing their share of renewable electric power, several adjudications targeted to developers are to be expected and we have a good chance of being part of the new development projects,” Sutter commented. “In the future, we hope to offer an opportunity for everyone interested to be part of the company’s growth story and success through the public offer of shares,” Sutter added.

Enefit Green’s CEO Aavo Kärmas said that Enefit Green is a rapidly growing renewable energy company in the Baltic Sea region. “The addition of Nelja Energia’s assets, competencies and development portfolio makes us a strong renewable energy company. Our development will not be limited to the transaction and we also intend to invest in the production of electric power from renewable sources in the future. Given the projects in the development portfolio, we have truly great potential for growth throughout the Baltic States and in other Baltic Sea countries where Eesti Energia operates,” said the head of Enefit Green.

The shareholders of Enefit Green and Nelja Energia signed the contract for the purchase and sale of the shares of Nelja Energia on 29 May this year. The value of the shares was 289 million euros; in addition, Enefit Green will take over the loans of Nelja Energia in the amount of 204 million euros. 77 % of the shares of Nelja Energia belonged to Vardar Eurus, which is a company owned 90 % by Norwegian local authorities and 10 % NEFCO. 23% of Nelja Energia’s shares belonged to investors of Estonian origin.

The Latvian Competition Authority approved the transaction in July of this year, while coordination from the Lithuanian Competition Authority arrived in August. The transaction was finalised on November 7 after approval from the Estonian Competition Authority. The buyer was counselled in the preparation and implementation of the transaction by Swedbank Corporate Finance, Ellex Raidla Law Firm and consultation companies PricewaterhouseCoopers and ÅF.

Enefit Green is a renewable energy company, which is owned by Eesti Energia, and which produces electricity and heat from wind, water, biomass, solar and mixed municipal waste. With the acquisition of Nelja Energia, a pellet factory in Latvia and minority shareholdings in biogas stations and wind turbine maintenance repair companies located in Estonia are added to Enefit Green’s production portfolio, in addition to wind farms. After the transaction is finalised, the company will own a total of 398 MW of wind power capacity in the Baltics. The company also owns a total of 25 MW of power generation capacity and 85 MW of heat production capacity in co-generation stations from renewable sources. The electricity production of Enefit Green will increase almost three fold and exceed the limit of 1 terawatt hour following the acquisition transaction.