LEO LT

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LEO LT AB is energy holding company in Lithuania. The name of the company stands for Lithuanian Electricity Organization (Lithuanian: Lietuvos elektros organizacija). The holding company own shares of Lithuania's three major power production and distribution companies, and is to be designated to invest in a construction of the new nuclear power plant in Ignalina and Lithuania-Sweden and Lithuania-Poland power connections.[1] As a Lithuanian national investor, the creation of LEO LT will allow negotiations to continue with power companies from Latvia, Estonia and Poland on the construction of the new Nuclear Power.[2] Holding company board is chaired by Rymantas Juozaitis and capital constitutes 5 billion litas.

[edit] History

On 28 June 2007, Lithuania's parliament adopted a law on building a new nuclear power plant. The law also stipulated creation of a "national investor" to gain investments for the new nuclear power plant.[3] The talks between the government and privately owned NDX Energija on the establishment of the "national investor" company started on 30 November 2007. The creation of LEO LT was agreed between the Government of Lithuania and NDX Energija on 20 December 2007.[2] The Lithuanian Parliament approved the agreement on 1 February 2008 and the Lithuanian President Valdas Adamkus signed the law on 12 February 2008.[4][5]

[edit] Structure

The shares of LEO LT are by the Republic of Lithuania (61.7 %) and by privately owned NDX Energija (38.3%). The Lithuanian government transfered to LEO LT its shareholdings in Lietuvos Energija (96.4%) and RST (Rytu Skirstomieji Tinklai - Eastern Power Grid Company, 71.34), while NDX Energija transfered 97.1% of shares in VST (Western Grid Company. The government is to offer to buy also a 20.3% stake in RST owned by E.ON.[2] The Kruonis Pumped Storage Plant and Kaunas Hydroelectric Plant will be excluded from LEO LT and will remain at the disposal of the state.[1]

LEO LT started to operate officially in 2008-05-20, holding company capital is 5 billion litas (approx. 2,3 billion USD). The shareholders' agreement will be in effect until 1 January 2015. During two years after the closing of the deal NDX Energija is allowed to sell 33.3% of shares in Leo LT only by the permission of the Government. The government has also the right to request NDX Energija to sell 5% to the Government in the first half of 2014 at the latest. LEO LT is set to float 0.3-0.4% of its shares on the Vilnius stock exchange.[2]

[edit] References

  1. ^ a b "Government Approves Establishment of Lithuanian Electricity Organisation LEO LT AB", Government of the Republic of Lithuania, 2007-12-20. Retrieved on 2008-02-25. 
  2. ^ a b c d Nerijus Adomaitis. "Lithuania agrees merged energy firm for nuclear plant", Reuters, 2007-12-20. Retrieved on 2008-02-25. 
  3. ^ Nerijus Adomaitis. "Lithuania adopts law on new nuclear power plant", Reuters, 2007-06-28. Retrieved on 2008-02-25. 
  4. ^ Nerijus Adomaitis, Patrick Lannin. "Lithuania vote gives boost to nuclear plant plan", Reuters, 2008-02-01. Retrieved on 2008-02-25. 
  5. ^ "Fitch release on Central European Power Sector", Reuters, 2008-02-14. Retrieved on 2008-02-25. 
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