Sorainen is advising Nelja Energia, a renewable energy producer and developer in the Baltic States, on the sale of a 100% shareholding to Enefit Green, a fully owned subsidiary of Eesti Energia, the largest energy producer in the Baltic States.
Vardar has agreed (through its subsidiary Vardar Eurus) to sell its 77% holding of shares in Nelja Energia. On 29 May 2018, Vardar Eurus and minority shareholders in Nelja Energia entered into a share purchase agreement with Enefit Green for sale of all the shares in Nelja Energia. The remaining 23% of the shares is being acquired from a number of Estonia-based investors.
The transaction value is EUR 488 million, making it the third largest transaction in Estonia.
Martin Kruus, the CEO of Nelja Energia, said that the shares in Nelja Energia have not yet been transferred to Enefit Green, explaining: “The transaction still needs approval by the County Executive Board of Buskerud County Administration, customary approvals and clearances by the relevant competition authorities and final verification of the terms of the agreement including price. Until then our daily operations continue as usual.”
Nelja Energia is the largest producer of renewable energy in the Baltic States, owning 17 wind farms in Estonia and Lithuania with a total capacity of 287 MW. In addition, the company has a biomass combined heat and power plant with electrical capacity of 3.9 MW and a pellet factory with annual production of 140 000 tons. In addition, Nelja Energia has a minority share in two biogas power and heat cogeneration plants in Estonia. In 2017, Nelja Energia produced 804 GWh of renewable electricity.
A pan-Baltic Sorainen team consisting of partners Toomas Prangli and Paul Künnap and associate Mirjam Vichmann from Estonia and partner Lelde Laviņa from Latvia assisted the client throughout the transaction, including carrying out vendor’s due diligence, hosting the data room for the bidders, and drafting and negotiating transaction documentation. The assistance required close cooperation between Sorainen Real Estate & Construction and Energy & Utilities Sector Groups.