September 7 (SeeNews) - The takeover of Moldovan gas transmission company Vestmoldtransgaz by Romanian peer Transgaz [BSE:TGN] has been finalised, the Romanian economy ministry said on Friday.
Present in Chisinau for the signing of the transaction documents, Romanian economy minister Danut Andrusca met with Moldova's prime minister Pavel Filip to address issues related to the consolidation of bilateral economic relations, the economy ministry said in a press release.
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Before the deal was signed, a team of experts from Eurotransgaz, the company owned by Transgaz in Moldova, travelled to Chisinau to take inventory of Vestmoldtransgaz's patrimony.
"The completion of this stage is a success but the hard work is just starting. I expect Transgaz to devote its attention and energy to the completion of the Ungheni-Chisinau gas pipeline, which is the next step in the strategic development of Transgaz," Danut Andrusca said after the signing of the documents.
In March, a contract for the privatisation of Vestmoldtransgaz for 180.2 million Moldovan lei ($10.9 million/8.8 million euro) was signed.
Through its Moldovan subsidiary Eurotransgaz, Transgaz has committed to invest over 93 million euro ($115 million) in Vestmoldtransgaz in the next two years.
"From now on, Transgaz is concentrating on completing the Ungheni-Chisinau gas pipeline project, which includes a 120 km pipeline, four gas pressure regulating and measuring stations, a bidirectional gas gauge and the construction of an administrative complex," Transgaz's general manager Ion Sterian 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.
Shares of Transgaz traded 0.28% higher at 363 lei on the Bucharest Stock Exchange by 1232 CET on Friday.
(1 euro=19.3642 Moldovan lei)