Notice to general meeting
Latvijas Gāze, JSC: Meeting of Shareholders to adopt reorganisation decision
The Board of Latvijas Gāze calls up and announces that the Extraordinary Meeting of Shareholders of Latvijas Gāze will take place on 15 August 2017 at the premises of Latvijas Gāze, 20 Vagonu Street, Riga. The meeting is scheduled to begin at 11.00 a.m. Registration for the meeting opens at 10.30 a.m.
The meeting is set to adopt a decision on the company’s reorganisation. Under the requirements of the European Union and the relevant amendments to the Energy Law passed on 11 February 2016, Latvijas Gāze has to unbundle natural gas trading and distribution by 1 January 2018. Unlike with transmission and storage, which were spun off in 2016 by setting up the Joint Stock Company "Conexus Baltic Grid", there is no ownership unbundling required. Hence, the company to be spun off may be a subsidiary.
The initial decision on the company’s demerger model was taken at the shareholders’ meeting of 16 June 2017, with the shareholders voting favourably for the separation of distribution system services from trading by setting up a subsidiary. Hence, if a favourable decision is made at the shareholders’ meeting of 15 August, the distribution company will have one shareholder – Latvijas Gāze, and all shareholders of Latvijas Gāze will become owners of the group.
A positive vote requires that three-fourths of shareholders be present and 85% of the present shareholders vote in favour. In such event, shareholders absent from the meeting will still retain their shares in Latvijas Gāze and accordingly in the distribution operator as part of the group.
The distribution operator will be the Joint Stock Company "Gaso".
Head of Investor Relations
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