Ellex Raidla has advised United Utilities on its sale of its 35.3% stake in AS Tallinna Vesi to the City of Tallinn and Utilitas for a cash consideration of EUR 100.2 million. Triniti advised the buyers on the deal.
Completion of the transaction is expected by April 2021, subject to the approval of the governing body of the City of Tallinn and merger control approval from the Competition Authority in Estonia. As a result of the sale, the City of Tallinn will hold a total of 52.35% and Utilitas will hold 17.6% of the stake in AS Tallinna Vesi.
United Utilities became the Estonian company's major shareholder when it was privatized in 2001 and a key partner in delivering an investment program to upgrade the city's fresh water supplies, sewage pumping stations, and sludge treatment facilities.
Utilitas is an Estonian district heating company and producer of renewable energy. The company administers 550 km of district heating pipeline and provides heat to 174,000 private households in eight Estonian cities and towns – Tallinn, Maardu, Keila, Rapla, Haapsalu, Kardla, Jogeva, and Valga.
According to Ellex, the “proceeds of the sale will support United Utilities in taking further steps to improve services for customers and communities in the north west of England, helping to drive a green recovery for the region.”
Ellex Raidla’s team included Partners Sven Papp and Martin Maesalu and Senior Associate Gerda Liik.
Triniti’s team consisted of Partner Ergo Blumfeldt, Senior Associates Ain Kalme, Sten Veidebaum, and Mikk Pold, and Associate Martin Jarve.