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Sorainen Advises Eesti Energia on Sale to Leonhard Weiss

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The Estonian office of Sorainen has advised Eesti Energia on its agreement to sell Eesti Energia Vorguehitus -- its network construction subsidiary -- to Leonhard Weiss Baltic Holding.

Eesti Energia Vorguehitus provides both turn-key solutions as well as single projects for the construction and maintenance of electrical and communication networks, from design to construction and maintenance services. 269 employees work in the company. 

Sorainen states that "the transaction is in line with Eesti Energia’s strategy to focus on the oil shale industry, and the group will earn EUR 7 million from sale of Vorguehitus shares." Leonhard Weiss Baltic Holding is a subsidiary of the Leonhard Weiss German engineering group, which has been operating in Estonia in the field of railroad construction and maintenance since 2011. 

“It makes sense for Eesti Energia to divest non-core operations as we are focusing more on the development of the oil shale industry,” Sandor Liive, Chairman of the Management Board of Eesti Energia, explained. “Vorguehitus, on the other hand, needs an owner whose main business is design and construction of networks. We managed to find such a new owner, which is why we hope that the company’s future development prospects are good.” 

Alexander Schneider, Chairman of the Management Board of Leonhard Weiss Baltic Holding, added that Vorguehitus, which will be renamed "Leonhard Weiss Energy", can use Leonhard Weiss’ existing network in the Baltic and Scandinavian countries to develop and expand its business further. 

The completion of the transaction is subject to conditions, including approval by the Estonian Competition Authority. Sorainen advised Eesti Energia in all phases of the transaction, including legal due diligence of operations, assistance in drafting transaction documents and in negotiating the terms of the transaction and support on other transaction issues. The Sorainen team included Partner Toomas Prangli, Senior Associate Paul Kunnap, and Associate Sandra Metsamart. Eesti Energia’s financial advisor for the transaction was Porta Finance.