COBALT advised the sale of district heating network company VKG Soojus to Gren

Gren is a Baltic green energy company whose fields of activity include energy production, as well as provision of district heating and cooling services. Gren also provides industrial energy solutions. VKG Soojus is a district heating network company whose main field of activity is distribution and sale of heat energy to the residents and businesses mostly in Kohtla-Järve and Ahtme-Jõhvi districts, thereby operating the third largest district heating network in Estonia.

Ahti Asmann, the CEO of Viru Keemia Grupp, explained that in the beginning of year 2022 the group decided to divest VKG Soojus, as distribution and sale of heat to end consumers is not part of the primary business activities of the group. According to Mr. Asmann the business focus and competences of Viru Keemia Grupp are primarily aimed at the development of industrial production in Ida-Viru County in Estonia. In the course of a strategic review performed at the beginning of the year, we found that as a business line, the provision of heating energy to end consumers would be more gainful in the hands of a specialised company.

COBALT advised the selling side in all legal matters. The deal team included partners Aivar Taro, Martin Simovart, Karina Paatsi, Elo Tamm and Egon Talur, senior associates Heleri Tammiste, Siim Vahtrus, Sandra Sillaots, Liina Saaremets, Mart Blöndal and Heili Haabu, associates Kristiina Kraav and Liis Leedo, and assistant lawyer Chris Oliver Rahumägi.

For further information, please see: here and here