Rothschild will support Naftogaz in unbundling and engaging TSO partner

Rothschild S.p.A. has won the bidding for investment and banking services regarding the unbundling of gas transmission activity, including the engagement of a qualified partner to Ukraine’s GTS operation

Rothschild S.p.A. has won the bidding for investment and banking services regarding the unbundling of gas transmission activity, including the engagement of a qualified partner to Ukraine’s GTS operation. The bidding was held in Prozorro e-procurement system. Naftogaz is acquiring the services to fulfill orders of the Ministry of Energy and Coal Industry and other legal acts including the Unbundling plan approved by the Cabinet of Ministers of Ukraine (CMU).

Rothschild offered the price of UAH 98.0 million, which was better than that of Lazard, the second bidder. The expected value of the purchased services was UAH 193.3 million.

The advisor shall facilitate the engagement of a qualified partner for GTS operation, including the assessment of risks related to the unbundling of gas transmission activities and recommendations on how to mitigate their impact; create conditions for successful selection of a qualified partner to operate the GTS; help prepare documents for the selection of a qualified partner, including drafting contest conditions and procedures as well as selection criteria; prepare a list of potential partners; structure the agreement; develop key commercial conditions for the agreement with a qualified partner; provide information and other necessary support for the engagement of a partner.

According to the Law “On the natural gas market”, results of the contest for selecting a qualified partner(s) to operate the Ukrainian GTS shall be approved by the Verkhovna Rada upon the submission by the Cabinet of Ministers of Ukraine. The CMU is responsible for the preparation and approval of contest conditions.

Background information: Rothschild S.p.A. is one of the world’s leading financial advisors. The company has been working with global energy giants like Shell, BG, GDFSuez, EDF, Eni, Statoil, Statkraft, Iberdrola and ESB. It has vast experience in M&A advising in the EU’s gas transmission and distribution sector, including M&A transactions aimed at TSO unbundling.

The range of financial services delivered by the company includes advising within transactions regarding M&A, restructuring, etc. The Rothschild global network includes more than 1000 advisors in 54 offices based in 40 countries across the globe. The company is a leader by number of M&A transactions, with more than USD 293 billion total value of the completed deals in 2016.



Corporate Communications Department
NJSC Naftogaz of Ukraine



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