On Friday, 2 September, shareholders of Latvijas Gāze supported the company’s reorganization, formation of a new company hand entrusting it with transmission and storage system assets, as confirmed by LG.
The decision received support from 99.98% of shareholders.
During the meeting, shareholders also interviewed the management of LG. Many minority shareholders used this opportunity.
Questions that were asked to the management of LG were mostly related to the division of the company, separation of assets, compensation amounts for shareholders that do not wish to be members of the new company and other related topics.
Some minority shareholders voiced concerns about the lack of clarity on the size of compensation for shareholders who do not want to keep their shares.
The management of LG provided answers to specific questions. However, in relation to shares, the value of the company and the compensation size, the management admitted that there are no clear answers right now.
Shareholders also decided to add amendments to LG’s statutes to allow the management board to call extraordinary meetings to make decisions on payments of dividends.
Division of LG would also include the formation of a new company – Conexus Baltic Grid. The base capital of the new company will not exceed EUR 39.9 million – the worth of a single share will be EUR 1.
In accordance with the Commercial Law, shares of the new company will be provided to LG shareholders who voted in favour of reorganization and submitted a written request to become shareholders in the new company. Approximately 75% of shareholders (5,000) have already submitted written requests to become shareholders in the new company.
In accordance with the government’s decision, shares of Conexus Baltic Grid will be provided to the Latvian state, which owns 117 shares in LG.
The precise size of the new company’s base capital will be determined by the management board of LG once a full list of shareholders has been compiled.
On 10 February, the Seaima approved amendments to the Energy Law to facilitate the liberalization of the gas market in Latvia and the division of LG. Included norms state that LG has the duty to form two companies by 3 April 2017 – one company will perform the management of the transmission and storage system and the other will perform the functions of the natural gas operator and trader.
By the end of December 2017, the operator of the unified gas transmission and storage system needs to have become legally independent from gas traders.
At the moment, there is only one company working in Latvia’s gas market – Latvijas Gāze. This company provides procurement, storage, transmission and trade of natural gas in Latvia. LG’s largest shareholders include Russian Gazprom, European Investment Bank’s Marguerite Fund, Germany’s Uniper Ruhrgas International GmbH and Itera Latvija.