You have 10 free articles left this month. Get your freeBasic subscription now and gain instant access to more.

Romania's Transgaz buys Moldova's Vestmoldtransgaz for 8.8 mln euro

Romania's Transgaz buys Moldova's Vestmoldtransgaz for 8.8 mln euro Transgaz. Author ( License: all rights reserved.

BUCHAREST (Romania), March 29 (SeeNews) - Romanian gas transmission company Transgaz [BSE:TGN], said on Thursday it has signed a contract for the acquisition of its state-owned Moldovan peer Vestmoldtransgaz for 180.2 million Moldovan lei ($10.9 million/8.8 million euro).

Through its Moldovan subsidiary Eurotransgaz, Transgaz has committed to invest over 93 million euro ($115 million) in Vestmoldtransgaz in the next two years, it said in a statement.

The sale and purchase contract was signed on Wednesday.

"By signing this contract, we may surely state that we have taken another major step towards the construction of a very important infrastructure project for Moldova," Moldovan economy and infrastructure, Chiril Gaburici, said.

At the end of February, Moldova's prime minister Pavel Filip announced that Eurotransgaz has won the government tender for the acquisition of Vestmoldtransgaz. Eurotransgaz submitted its bid for Vestmoldtransgaz in December.

"As of today, the company [Transgaz] has turned into a regional economic player. The investment will create new jobs, added value and will increase the energy security of both countries. It is a long-term binding and tangible contribution to the diversification of gas supply sources and routes to the Republic of Moldova," Romanian ministry of economy, Danut Andrusca, said.

Vestmoldtransgaz operates the gas transmission link between Moldova's Ungheni and Romania's Iasi. Eurotransgaz plans to launch the construction of the Ungheni-Chisinau gas transmission pipeline within up to two years.

Transgaz's net profit edged up 1% year-on-year in 2017, reaching 602.2 million lei ($160 million/130 million euro).

The company shares traded 0.12% higher at 405 lei on the Bucharest Stock Exchange by 1144 CET on Thursday.

(1 euro=20.4646 MDL)