Armenian Government Declares 100% of Electric Networks of Armenia Shares Subject to Public Interest Acquisition

YEREVAN — The Armenian government has adopted a decision recognizing all shares of Electric Networks of Armenia (ENA) as subject to overriding public interest, paving the way for a potential acquisition of the electricity distribution company.

The decision was approved during the government’s October 15 meeting.

According to the justification accompanying the decision, the measure follows a November 17, 2025, ruling by the Public Services Regulatory Commission, which terminated the company’s electricity distribution license.

Prime Minister Nikol Pashinyan stated that the government’s ultimate objective is to place the company under the management of a leading international operator.

Under Armenia’s Law on Energy, the government had previously offered shareholders the opportunity to transfer their shares through a mutually agreed procedure. However, the shareholders did not exercise that option within the prescribed three-month period.

The Constitutional Court has also determined that the appointment of a temporary administrator is strictly a preventive and provisional measure and cannot replace a stable, long-term legal solution for managing the electricity distribution system.

The decision, developed by the Ministry of Territorial Administration and Infrastructure, does not require immediate additional government funding.

However, the government acknowledged that future state or local budgets may need to allocate funds to compensate shareholders for the acquisition of their property, in accordance with applicable legislation, and to cover expenses associated with implementing the process.

According to the appendix accompanying the decision, Electric Networks of Armenia has 246,423 ordinary registered shares.

Of these, 172,496 shares, representing approximately 69.9% of the company, belong to Tashir Capital, whose voting rights have been suspended.

The remaining 73,927 shares, representing approximately 30%, are owned by Liormand Holdings Limited, a company registered in Cyprus.

The total nominal value of the company’s shares is approximately 21 million Armenian drams.

The government’s decision represents a significant development in the future ownership and management of Armenia’s electricity distribution network. It establishes a legal basis for pursuing the acquisition of the company’s shares while leaving questions of compensation, implementation, and future management arrangements to be addressed through subsequent procedures.