Armenia Seeks to Acquire 100% of the ENA Electricity Distribution Company: The price has not yet been determined

Armenia is acquiring 100% of the shares in the electricity distributor Electric Networks of Armenia (ENA). On October 15, the government declared the investment to be in the overriding public interest. ENA is owned by Samvel Karapetyan’s Tashir Group. According to the government, Tashir Capital holds approximately 70% of the shares, and Liormand Holdings Limited holds approximately 30%.

Multi-stage valuation

Infrastructure Minister Davit Chudatjan presented the draft to the Cabinet. His ministry is coordinating the acquisition. Within two months of the resolution taking effect, it will prepare an inventory of assets. A one-time extension of up to two months is possible. After that, the ministry will organize a market-value appraisal within three months.

The appraisers will take into account investments, dividends paid, and liabilities. This also includes contingent and off-balance-sheet obligations, loans, guarantees, and ongoing legal proceedings. Shareholders will receive the proposed price. They may accept it or appoint their own appraiser. They may file an objection to the inventory with the ministry or in court within one month. The government has not specified a purchase price. The transfer of shares is scheduled to begin by May 1, 2027.

Prime Minister Nikol Pashinyan asked the cabinet how the amount was determined. Liabilities must be factored in; high revenue does not automatically mean high value. He announced that he would also review the legality of ENA’s privatization. The two processes are proceeding separately: “We are not linking the two processes because neither hinders nor precludes the other.”

Background and Market Situation

In 2025, the government had taken over the administration of ENA via an emergency law and accused the company of mismanagement. ENA rejects the accusation. The Regulatory Commission for Public Services suspended the distribution license. Shareholders were permitted to sell their shares to the state but did not respond within the deadline. In its statement of reasons, the ministry notes that transitional administration alone is not a permanent solution. The goals are an uninterrupted power supply, energy security, and consumer protection.

Armenia’s Statistics Committee reported electricity generation of 6,268.4 million kilowatt-hours for January through August. This is 5.3% more than in the same period last year. In August, generation fell to 819.7 million kilowatt-hours: 4% less than in August 2025. Economic activity grew by 7.3% from January through August, while construction increased by 24.7%. Consumer prices in August were 4.4% higher than a year earlier.

Implications for German Companies

German suppliers of grid and metering technology should clarify who will remain the contracting party for ongoing contracts: the government, the transitional administration, or ENA. Investors in the Armenian energy sector should monitor how the ministry factors liabilities and arbitration proceedings into the market value. This standard is likely to apply to future investments.

Sources: Armenpress on the cabinet decision of October 15 (EN); Statistical Committee of Armenia on economic activity from January through August (EN)

SK, Frankfurt