Lithuania’s government may buy out stake in Leo LT from NDX Energija

May 26, 2009 at 11:44 am Leave a comment

As the BNS reported Lithuania’s government may buy out the stake in Leo LT from privately-owned NDX Energija, Prime Minister Andrius Kubilius has said.

According to him, this is one of the options for the breakup of Lithuania’s national energy company.

“We are discussing various possible solutions, and there are several options. Yet, the general approach is the same as I said before – I do not see any chance for Leo to continue in its present form. We may simply agree with the private shareholder and buy out those shares,” Kubilius said in an interview to the public radio station Lietuvos Radijas (Lithuanian Radio) on 26 May.

Earlier this week Energy Minister Arvydas Sekmokas mentioned a possibility that the national energy company might be nationalised.

Finance Minister Algirdas Semeta expressed hope that partial nationalization of Leo LT would not entail additional burden for the state. Any decisions should be well-founded, he said.

As the BNS reminds analysts doubt whether the budget, which has been running below revenue target this year, would be capable of paying back 607.7 million litas (EUR 176.14 mln), i.e. the amount of dividends paid to Leo LT by its subsidiary VST last year.

Media reports say that the task group led by Sekmokas has put forward several options for Leo LT reorganisation, including the liquidation of the company, its reorganization as agreed by both shareholders or taking a decision on Leo LT’s fate despite the opposition of NDX Energija.

Under the first option, if both parties agree to restore the actual situation before the establishment of Leo LT, NDX Energija should get back the shares in VST it owned before the deal, while the state should recover its holdings in Lietuvos Energija (Lithuanian Energy) and RST.

Moreover, the amount paid by VST to Leo LT in dividends should be reimbursed to NDX Energija in full or in part.

The government owns 61.7 percent of Leo LT and NDX Energija holds the remaining 38.3 percent stake. Leo LT controls 97.91 percent of VST.

Source BNS

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Entry filed under: Baltic States, Economics, Energy, Estonia, Latvia, Lithuania, Northern Europe, Politics.

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