EU's Marguerite fund buys 29 pct stake in Latvian gas utility

Latvijas Gaze AS

28/01/2016 13:28

RIGA, Jan 28 (Reuters) - European Union infrastructure 
investment fund Marguerite has bought a 28.97 percent stake in 
Latvian gas utility Latvija Gaze  GZE1R.RI  from Germany's 
Uniper, part of E.ON  EONGn.DE . 
    The companies declined to disclose the value of the deal.  
    Latvijas Gaze operates the Baltic state's gas transmission 
and distribution grids, as well as the region's only underground 
gas storage, Incukalns. It sells gas imported from Russia. 
    Latvian Economy Minister Dana Reizniece-Ozola told Latvian 
news agency LETA on Thursday that Marguerite's involvement would 
help Latvijas Gaze to expand Incukalns, a key part of plans to 
develop the Baltic region's gas market.  
    Russia's Gazprom  GAZP.MM  is the main shareholder in 
Latvija Gaze with 34 percent, while Latvian gas trader Itera 
Latvija has 16 percent. 
    The Marguerite Fund, set up in 2010 with backing from 
several EU financial institutions including the European 
Investment Bank, will be the second largest shareholder. Uniper 
will retain a 18.26 percent stake.  
    E.ON spun off its coal, gas and hydro power plants as well 
as energy trading into Uniper from Jan. 1 and plans to list it 
in the second half of 2016. It has previously sold its stakes in 
gas utilities in Finland, Lithuania and Estonia as part of a 
strategy to refocus on its home market.  urn:newsml:reuters.com:*:nL8N14O0ZI 
    The Latvian government has decided to split Latvijas Gaze 
and to liberalize its gas market by April 2017, although the 
plan still has to be approved by parliament.  urn:newsml:reuters.com:*:nL5N0W53WT 
 
 (Reporting by Gederts Gelzis Additional reporting by Vera 
Eckert in Frankfurt and Tom Kaeckenhoff in Duesseldorf; Writing 
by Nerijus Adomaitis; Editing by Mark Potter) 
 ((nerijus.adomaitis@thomsonreuters.com; +47 9027 6699; Reuters 
Messaging: nerijus.adomaitis.thomsonreuters@reuters.net)) 
 
Keywords: LATVIJAS GAZE M&A/MARGUERITE EON