Eesti Energia to sell construction subsidiary to Leonhard Weiss
TALLIN. June 27 (Interfax/BNS) - Estonian government owned energy concern Eesti Energia will sell its subsidiary construction company Vorguehitus to Germany's Leonhard Weiss Gruppe for 7 million euros.
The energy company reported that the deal with Leonhard Weiss Baltic Holding, the Baltic branch of the group, was signed Thursday.
Vorguehitus builds electricity and communication networks.
"It makes sense for Eesti Energia, which plans to focus on the shale business to get rid of non-core assets. Vorguehitus needs an owner whose focus is aimed at design and construction of networks. We have found such," Sandor Liive, the chairman of the Estonian company said.
"Vorguehitus will be the third company within the Baltic branch of Leonhard Weiss along with railway company Leonhard Weiss RTES and highway construction firm Leonhard Weiss Viater Ehitus. We hope the unified work of the three companies will provide synergy and ensure further development," Alexander Shnayder, the head of Leonhard Weiss Baltic Holding, said.
Vorguehitus will be renamed Leonhard Weiss Energy AS. It will be able to develop and expand construction projects as it enters other Baltic and Scandinavian countries.
Vorguehitus AS offers complete solutions and individual projects to create and maintain electricity grids and telecom networks. Eesti Energia saw turnover of 22 million euros in 2013 with Vorguehitus accounting for 1.3 million euros.
Leonhard Weiss Baltic Holding is the Baltic division of the family company Leonhard Weiss, founded in Germany in 1900. Since 2011 the company has worked in Estonia, building and maintaining roads.
Leonhard Weiss Gruppe is involved in highway construction, as well as the construction of telecom networks, railways and civil engineering.
