ESTONIA: Final negotiations for the privatisation of national rail freight operator Operail are now underway with Tallinn-based Tiigi Keskus, which submitted the highest bid.
Several potential buyers from Estonia and abroad had qualified for the second step of the privatisation process, which began in June when potential buyers had the opportunity to review an initial information package and submit non-binding offers.
All the qualified bidders the opted to make binding offers in the second stage. ‘This shows that, despite the difficult times, the Operail team has done a good job in its business activities and in the privatisation process’, said Minister of Infrastructure Vladimir Svet on October 17.
Tallinn-based Tiigi Keskus is active in property management, and owns a majority stake in food grain processing and pasta production group Tartu Mill.
‘The railway business is a new and promising field of activity that has certain synergies with the existing business’, said Tiigi Keskus board member Uuno Lausing. ‘We plan to continue offering high-quality freight transport and rolling stock repairs services in Estonia and to expand the operations geographically.’
If the negotiations do not lead to the signing of the purchase and sale agreement, other bidder will have the opportunity to start negotiations.
The sales process is being carried out by the investment banking unit of LHV Pank, and the legal adviser is Ellex Raidla Advokaadibüroo.
