On Monday the Ministry of Economic Affairs and Communications (MEAC) and the infrastructure building group Verston signed the contract of sale and purchase, according to which Verston Holding, the company that submitted the best offer in the public tender, will acquire 100 percent of the state-owned roadbuilding company AS Eesti Teed.
On Monday, the contract was digitally signed by the Minister of Economic Affairs and Infrastructure Taavi Aas and the board member of Verston Holding OÜ, the entity that consolidates companies of the Verston group, Veiko Veskimäe. Before the contract enters into force it must be approved by the Competition Board.
According to the Minister of Economic Affairs and Infrastructure Taavi Aas, privatisation of AS Eesti Teed can be described as a great success. “In the course of the tender the real value of Eesti Teed in the open market was identified. The final price of the transaction was 3 million euros higher than the initial price, and a total of five different tenderers wanted to buy the company. Eesti Teed will get a new ambitious owner that is based on Estonian capital and is extremely interested in the expansion of its activities. From now on the state will be able to focus on the development of an attractive economic environment, and the assurance of the good quality of roads as a regulator,” said Aas.
The manager of Verston Veiko Veskimäe noted that the acquisition of Eesti Teed provides a good opportunity to expand activities of the group to the field of maintenance of infrastructure. “Until now Verston has been focusing on the building of infrastructure, where we have witnessed a fast growth and in recent years we have built numerous complex and large-scale infrastructure objects for the state. Expansion into the area of maintenance of infrastructure has been our strategic interest for quite a while. Since Eesti Teed is one of the market leaders in the field of maintenance and surfacing of roads, and it also engages in the mining of materials and building, the sale transaction creates an opportunity to find synergy between the fields of operation of both companies, to unite two teams that possess a vast experience, and to offer our customers a more comprehensive service. We want to be the market leader in the field of building and maintenance of roads, including the use of innovation and environmentally sustainable solutions,” noted Veskimäe.
Verston won the public tender for the sale of Eesti Teed organised by MEAC in October ahead of four other companies with an offer worth 19.7 million euros. The initial price of the tender was 16.9 million euros. Consulting services for the sale transaction were provided by Redgate Capital, audit bureau BakerTilly Baltics, and law firm Ellex Raidla.
