August 25 (SeeNews) - Romania’s natural gas transport system operator Transgaz will ask its shareholders to approve the sale of a 25% stake in its Moldovan subsidiary Vestmoldtransgaz to the European Bank for Reconstruction and Development (EBRD) for 20 million euro ($23.6 million).
The transaction consists of a capital increase for Vestmoldtransgaz to which the EBRD will contribute 20 million euro, Transgaz said in a statement filed with the Bucharest Stock Exchange, BVB.
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The company's shareholders will be asked to approve the sale at a meeting scheduled for October 5.
According to the statement, Eurotransgaz, a company owned by Transgaz in Moldova, and Transgaz will jointly undertake the obligation to buy from EBRD its stake in Vestmoldtransgaz at a predetermined price when the bank exercises its participation interest put option in Vestmoldtransgaz.
Transgaz bought Vestmoldtransgaz through Eurotransgaz in September 2018 for for 180.2 million Moldovan lei ($10.9 million/8.8 million euro).
Vestmoldtransgaz operates the gas transmission link between Moldova's Ungheni and Romania's Iasi. A further connection point in Chisinau is almost completed, Transgaz said in January.
The Ungheni - Chisinau project involves the construction of a gas pipeline 120 kilometres in length, three gas delivery stations as well as the procurement of equipment. The Iasi-Ungheni section of the pipeline, put into operation in 2014, can transport about 1.5 billion cubic metres of natural gas per year.
Transgaz shares traded 1.78% higher at 286 lei ($70/59 euro) on the Bucharest Stock Exchange by 1506 CET on Tuesday.
(1 euro=19.3642 Moldovan lei)