On 9 January 2007, the representatives of OÜ Baltic Rail Services, Republic of Estonia (Ministry of Transport and Communication) and AS Eesti Raudtee (Estonian Railways) carried out all necessary actions for the closing of share purchase agreement concluded between the parties on November 17, 2006.

With the closing of the transaction BRS transferred all 66 % shares it owned in Estonian Railways to the Republic of Estonia against the payment of 2,35 billion EEK (~150 million EUR) as a share price and 150 million EEK (~10 million EUR) as dividend for previous years.



The completion of the transaction successfully concludes more than a year long negotiations between the Republic of Estonia and private investors. The agreement also includes a compromise with respect to several ongoing disputes between BRS, incl. its foreign investors and the Republic of Estonia in Stockholm and in ICSID arbitration in Washington, whereas the total amount of claims was in the region of 5 billion EEK (~320 million EUR).



Our M&A team advised the seller Baltic Rail Services in all legal aspects of the transaction, including the corporate and completion side, as well as in the strategic negotiation issues and related litigation matters.