2018
On the 15th of February 2018 Adven Estonia and Alexela concluded a transaction whereby Alexela bought Adven Estonia’s natural gas portfolio and Adven Estonia acquired Gaasienergia AS and its gas distribution network from Alexela.
The transaction will allow both companies to develop their core businesses as it significantly increases Alexela’s natural gas customer base and lengthens Adven Estonia’s gas distribution network by almost 65 kilometers.
“We want to offer our customers complete energy solutions. The expansion of our natural gas portfolio enables us to be a good business partner to a larger amount of clients. With this transaction we are also leaving the natural gas distribution business, which is no longer the focus of the company. Success in this business is achieved through scale effect and a company the size of Gaasienergia AS cannot achieve success on its own.” Maria Helbing, the chairman of the management board of Alexela Energy commented.
The chairman of the management board of Adven Estonia said the following of the transaction: “As the second largest provider of natural gas distribution services in Estonia, Adven has always been open to expanding its service area. Today we managed to increase the distribution network by almost one third. In the distribution business the scale effect is important because it allows for greater effectiveness, which in turn allows the company to provide a more competitive service to its customers.”
TARK assisted Adven Estonia with the share purchase agreement, and also with competition and regulatory matters. Adven Estonia was advised by partners Hannes Küün and Tanel Tark.
