ESTONIA: The cabinet has approved Minister of Infrastructure Vladimir Svet’s proposal for the privatisation of national freight operator Operail to progress to the next stage.
The two-stage process began in June, when potential buyers had the opportunity to review an initial information package and submit a non-binding offer.
‘There was a lot of interest, and the profile of the interested parties was wide, including those from Estonia and abroad’, Svet said after the cabinet’s decision on August 8.
The second stage will now go ahead, with ‘suitable’ investors having access to additional information enabling them to submit binding offers and begin detailed negotiations.
LHV Investment Banking Unit is conducting the sale, which aims to get the highest price for the business. Svet said the expected price could be not disclosed, to protect negotiating positions.
‘Cargo transport is not a strategically important activity for the state, so we have decided to privatise the company’, Svet said. ‘I am pleased that there is interest in Operail and that we can move forward with the sales process. A private investor can expand their business operations, allowing the company to continue its activities, while the state can direct its resources to strategically necessary activities.’
