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Thursday, 25.04.2024, 14:09
Number of M&A transactions in Baltics to grow in infrastructure, transport
According to Prangli, the current numbers of M&A transactions are equal to those seen before the previous economic crisis. "Activity is high and about as intense as before the crisis more than ten years ago," Prangli told BNS.
He added that activity being on the pre-crisis level doesn't mean, however,
that there is the danger of a bubble bursting on that market.
"The current year began with a high workload both for us and other advisers,
which spells levels for this year equal to last year's at least," Prangli
said.
An increase is expected this year in the numbers of transactions in the
infrastructure and transport sectors, Prangli said.
"Looking ahead, what we expect this year is for the financial and
telecom sectors to keep up activity, maybe also the whole infrastructure and
transport sector as well," he said. "The driving force behind
activity is infrastructure investments in general, such as Rail Baltic, major
road construction projects of the Road Administration and the expansion of the
gas transmission network and interconnecting it with Finland," Prangli
said.
He said that such infrastructure investments boost investors' interest in
Estonia. "All infrastructure investments increase interest on the part of
foreign investors, and as a result transactions will start to happen
here," he said.
The year 2017 was an active year on the Baltic M&A market and there was
a remarkably big number of transactions covering the whole region, Prangli
said.
"The year started with the sell-off of Forum Cinemas and Nordic
Cinema Group, Providence bought TV3 and all of MTG, the Santa Monica and
Starman transactions - these are
transactions involving the whole region that were characteristic of last
year," the Sorainen managing
partner said.