The government has decided to recognize an overriding public interest in 100% of the shares of the Electricity Networks of Armenia (ENA). The purpose of this decision is to make the company state property and subsequently transfer its management to an international company. News.am reports.
The decision was made single-handedly by the government, and it remains an open question how the value of the shares will be determined. This is important because it concerns not only the price of the company but also the transparency of the nationalization process.
From a legal standpoint, it is also interesting what steps the former owners of ENA are preparing to take. Their position could significantly influence the course of the process.
At the same time, the nationalization process itself raises a number of questions. Among them: how the company will be managed until it is handed over to an international company, and whether there will be any changes for consumers during that period.
It is not yet known when the process will be completed and under what terms. It is clear only that the government is pursuing the full nationalization of the company with the intention of subsequently transferring management to an international company.
The question of greatest interest to the ordinary consumer is what will change for them. Nationalization in itself does not yet mean a change in tariffs or service quality, but the transition period of management is always a zone of risk. If, before the handover to an international company, the company is managed without a clear long-term strategy, this could be felt in the operation of the grid.
On the other hand, the mechanism for determining the value of the shares is not yet disclosed. If the price is set without an independent valuation, the likelihood of legal disputes with the former owners increases, and this could drag out the entire process.
In the coming months, two things are worth watching: whether the valuation method will be made public, and what status the company will have before a new manager appears.
