Transgaz, the state-owned company that operates Romania’s gas transport network, plans to sell a 25% stake in Moldovan company Vestmoldtransgaz to the European Bank for Reconstruction and Development.

The transaction consists in a capital increase operated by Vestmoldtransgaz to which the EBRD will contribute with EUR 20 million. The money will thus remain in the Moldovan company while Transgaz will reduce its stake.

The EBRD will have the option to sell its stake to Transgaz at a preset price.

Transgaz has summoned its shareholders to a general meeting on October 5 to endorse the transaction.

Vestmoldtransgaz, a subsidiary of Transgaz, is a technical operator of the national natural gas transmission system in the Republic of Moldova. Transgaz and Vestmoldtransgaz operate the Iasi-Ungheni-Chisinau gas pipe, through which Romania can export gas to the Republic of Moldova. The investment in this project amounted to EUR 150 mln.

editor@romania-insider.com

(Photo source: Transgaz.ro)