EBRD buys 25% stake in Romanian subsidiary Transgaz in Moldova
BUCHAREST (Romania), August 25 (SeeNews) – Romanian gas transport company Transgaz [BSE:TGN] announced Wednesday that the European Bank for Reconstruction and Development (EBRD) has become a shareholder with a 25% stake in its Moldovan subsidiary Vestmoldtransgaz.
The EBRD became a shareholder of Vestmoldtransgaz following the fulfillment of the conditions precedent linked to a subscription agreement, Transgaz said in a press release filed with the Bucharest Stock Exchange, BVB.
Under the terms of the agreement, the EBRD pledged to increase the subsidiary’s share capital by 20 million euros ($ 23.5 million) in order to finance the development costs of the Ungheni – Chisinau gas pipeline.
âThe Ungheni-Chisinau gas pipeline, connecting the Moldovan gas network to the European Union via Romania, is an important step towards the geographic diversification of Moldova’s energy supplies. Having invested in a 25% stake in Vestmoldtransgaz, the EBRD plays a key role in strengthening the country’s energy security and contributing to sustainable economic growth that benefits everyone, âsaid EBRD Vice President , Alain Piloux.
Established in 2014, Vestmoldtransgaz owns and operates the pipeline network in western Moldova and provides gas transportation services in the country.
Transgaz bought Vestmoldtransgaz in 2018 via its Moldovan subsidiary Eurotransgaz, for 180.2 million Moldovan lei (10.2 million dollars / 8.7 million euros).
âThe Ungheni-Chisinau gas pipeline is a strategic project for Romania, for Moldova, for Transgaz and now also for the EBRD. We have succeeded in finalizing this investment, thus becoming the first Romanian multinational in the gas transport sector, with a contribution to regional energy security â, said the Managing Director of Transgaz, Ion Sterian.
The 120 km long gas pipeline between Ungheni and Chisinau connects the gas transmission networks of Romania and Moldova. The pipeline connects the capital of Moldova Chisinau with the interconnection pipeline between the eastern city of Iasi in Romania and the Moldovan city of Ungheni, located on the border with Romania.
Shares of Transgaz were trading down 1.17% to 254 lei on the Bucharest Stock Exchange at 1556 CET on Wednesday.
($ = 0.8509 euros)