ESM Set to Expand Share Capital to Facilitate TEC Negotino Merger
A recent announcement from our sources reveals that the North Macedonian power utility company, Elektrani na Severna Makedonija (ESM), is making strategic plans to increase its capital. The envisaged increase is set to be a staggering 572.5 million denars ($10.1 million/9.3 million euro). The move involves issuing 572,495 new shares, with each priced at their nominal value of 1,000 denars.
A Strategic Merger with TEC Negotino
The growth in capital is embarked upon with the objective of streamlining a merger process with the fuel oil-fired power plant, TEC Negotino. As it stands presently, ESM boasts a substantial capital of 31.8 billion denars which is split among 31,738,878 shares, each carrying a par value of a thousand denars. This technique is a clear indication of ESM’s effort to make business operations more effective and profitable.
Government Considerations
This significant merger became a viable strategy following the 2020 deliberations by the country’s government. Back then, the former Prime Minister, Zoran Zaev expounded on two main options at the government’s disposal; the possible selling off of TEC Negotino or transitioning its operations towards natural gas. The narrative now seems to mould towards the latter and implies a considerable shift in the energy sector.
