OREANDA-NEWS. February 24, 2010. Estonia's Minister of Economy and Communications Juhan Parts said on Wednesday that the initial public offering (IPO) of the state-owned energy company Eesti Energia may take place in June, but for this to happen the government needs to decide on the matter in May.

Parts said in his remarks to BNS that mid-May is a tentative deadline by which the government should decide either in favor of an IPO or increasing the company's stock capital by means of a cash payment by the state.

The government is at one over the need to carry out the investment program of Eesti Energia, and the way financing will be arranged must be decided during 2010, the minister said.

According to earlier information Eesti Energia would sell newly issued shares and the float would make up one-third of the total number of shares. The money thus raised would amount to 450 million euros.

Eesti Energia needs additional money mainly to build new oil shale burning generating units and increase its capacities for refining shale oil.

The government discussed options for financing Eesti Energia last fall and put off the decision until spring 2010.