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TRINITI advises Utilitas on acquisition of Paide and Valka district heating business from Enefit Green

In cooperation with TRINITI’s Riga office, we advised our good client Utilitas on the expansion of its operations in Estonia and Latvia.

Utilitas today signed sale and purchase agreements with Enefit Green AS for the acquisition of the Paide and Valka district heating businesses from Enefit Green AS. The transaction is valued at EUR 15.8 million and is subject, inter alia, to the approval of the Estonian and Latvian competition authorities.

In Paide, the transaction consists of a district heating enterprise whose assets include a cogeneration plant commissioned in 2015, a biomass boiler plant, a reserve boiler house and a solar park. The company employs 21 people and sells heat to 226 buildings. Valka’s district heating business includes a cogeneration plant built in 2012 and reserve boiler house. The company employs 10 people, and the heat is sold to the customers by the city of Valka.

Enefit Green is listed on Nasdaq Tallinn and has approximately 64,000 investors. Enefit Green is increasing its green energy generation capacity in order to increase the supply of affordable green electricity and strengthen Estonia’s energy security. The company is currently building five wind farms in Finland, Estonia and Lithuania with a total capacity of 525 MW and five solar power plants in Estonia, Latvia and Poland with a total capacity of 100 MW.

Utilitas is the region’s leading renewable energy producer and the largest district heating company in Estonia. Today, Utilitas already offers district heating services in eight cities: Tallinn, Maardu, Haapsalu, Rapla, Valga, Keila, Jõgeva and Kärdla. The company is moving towards carbon neutrality by building new renewable energy generation capacities in the region, investing in solar and wind energy in Estonia, Latvia and Lithuania, and implementing the first green hydrogen pilot project.

The TRINITI team was led by Ergo Blumfeldt, the attorney-at-law and managing partner, together with attorney-at-law Mikk Põld and Ain Kalme, and co-head of TRINITI’s Infrastructure and Transport working group. The regulatory side was led by Tanel Kalaus together with Sandor Elias, and Ramil Pärdi, Risto Käbi, Katrin Kose, Peeter Mõtsküla, Maarja Lehemets and Martin Järve also played a key role in carrying out the legal audit.