Government to Buy 150 Million Euros of Capital Stock in Eesti Energia
The Cabinet today agreed to enlarge Eesti Energia's capital stock by 150 million euros, which will be bought by the government.
Plans for the deal were announced last year. The state energy monopoly's capital stock will now total 621.6 million euros.
The government will make the purchase at one euro per share with financing assets from the 2012 national budget.
An analysis is under way to determine whether the investment must be handled as government aid.
The Ministry of Economic Affairs has said that the deal cannot be considered government aid because expected yield for the investment is comparable with the demands of private investors.
Ott Tammik