Energy, Estonia, Mergers and take-overs

The price of the transaction is confidential.

Alexela Energia council chairman Heiti Hääl said that it is a strategic purchase. "Alexela companies have for two decades been active in Estonia in the energy carriers' trade. Producing shale oil is one of the few local raw material-based production spheres in Estonia focused on export markets. We believe that with the help of Alexela's know-how, we can support the development of Kiviõli Keemiatööstus at international raw material markets and help the company in making additional investments to increase production capacity," Hääl said.

Robert Karpelin will continue as manager of Kiviõli Keemiatööstus: one of Alexela companies' managers Juhan Parmas will become the other board member.

Alexela finances the purchase from its own means.

Kiviõli Keemiatööstus council chairman Toomas Tamm said that the development of the company had reached a stage where it was necessary to make step closer to large sales markets and share responsibility about the upcoming investments.

Alexela Energia owns stakes in AS Alexela Oil and AS Reola Gaas. Businessmen who are among owners of Alexela Energia also are planning an LNG terminal in Paldiski.

Kiviõli Keemiatööstus belongs to Toomas and Raivo Tamm. The oil shale industry company had net turnover of 23.4 million EUR and profit of 7.1 million EUR in 2010.