Operail's Privatization: Estonian Freight Giant Changes Hands
Deal News | Dec 17, 2024 | CEE Legal Matters
Ellex, a prominent law firm, has played a central role in advising on the privatization of Operail's business operations in Estonia. The state-owned rail transport company, known for its freight transportation and rolling stock maintenance, has offloaded its business operations, including its subsidiary Operail Repairs, to Tiigi Keskus for EUR 19 million. Operail's transition from public to private hands is part of a broader Estonian government initiative to streamline its portfolio by divesting non-strategic assets. Previously active in the Finnish market through wagon rental and freight transport, Operail has in recent years retracted to focus on core operations. This deal follows the government's February 2024 decision to privatize Operail's remaining lines. The legal teams involved included leading attorneys from Ellex and Sirel & Partners, both of whom offered strategic legal insights and support throughout the privatization process.
Sectors
- Transportation
- Legal Services
- Government and Public Sector
Geography
- Estonia – The primary location of Operail's operations and the privatization transaction involving an Estonian company, Tiigi Keskus.
- Finland – Previously, Operail had operations in Finland, which were divested as part of their strategy to focus on core business.
Industry
- Transportation – Operail specializes in freight transport on Estonian railways, making the transportation industry key in understanding the company's core operations.
- Legal Services – Ellex and Sirel & Partners, law firms advising on the privatization, represent the legal services industry, crucial for corporate transactions.
- Government and Public Sector – Operail was a state-owned entity administered by the Estonian Ministry of Climate, indicating the government and public sector's involvement in the privatization process.
Financials
- EUR 19 million – The deal price for the sale of Operail's business operations to Tiigi Keskus.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Operail | Target company | Company | Estonia's state-owned rail operator specializing in freight transport and rolling stock maintenance. |
| Tiigi Keskus | Bidding Company | Company | An Estonian company that purchased Operail's business operations. |
| Ellex | Legal Advisor | Company | A law firm advising on the privatization of Operail's operations. |
| Sirel & Partners | Legal Advisor | Company | A law firm representing Tiigi Keskus in the transaction. |
| Estonian Ministry of Climate | Government Entity | Government | The government body administering Operail, involved in the privatization decision. |