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COBALT advised European Diversified Infrastructure Fund II on investment in Utilitas, leading private Estonian energy group


COBALT advised the European Diversified Infrastructure Fund II SPSc (“EDIF II” or the “Fund”), a dedicated long-term infrastructure fund managed by First State Investments (“First State”), on investment in Utilitas, Estonia’s largest district heating company and a leading renewable power producer. 

According to an agreement signed in Tallinn today, EDIF II has acquired an 85% shareholding in Utilitas with current shareholders and managers of Utilitas retaining 15% shareholding.

Utilitas is the largest district heating company and one of the largest renewable power producers in Estonia. The Company operates 521km of district heating networks and supplies heat to approximately 166,000 households in eight Estonian cities, including in Tallinn, the capital city.

The management and supervisory boards of all three subsidiaries of the group, AS Utilitas Tallinn, AS Utilitas Eesti and OÜ Utilitas Tallinna Elektrijaam will remain unchanged. Priit Koit will continue as the CEO and Kristjan Rahu as the Chairman of the Supervisory Board of Utilitas. The supervisory board will be reinforced by two new members, Gregor Kurth, Director at First State, and Andreas Greim, a district heating and energy expert with experience from Dalkia International, Areva and Électricité de France, as an independent member.

The client was advised throughout the entire transaction process by COBALT’s team led by partner and head of mergers and acquistitons practice group Martin Simovart and senior associate Heleri Tammiste. The project also required significant contribution by partner and head of banking and finance practice group Marina Kotkas, partner and head of construction and energy practice group Aivar Taro, specialist counsel Jesse Kivisaari and associates Liina Saaremets, Mart Blöndal and Madis Reppo. 

Photo source: Utilitas