Government offers just $380,000 for entire Electric Networks of Armenia

The Armenian government has offered the family of Samvel Karapetyan 23.3 billion drams ($62.3 million) for 100% of the shares of Electric Networks of Armenia, on the condition that dividends paid over the past ten years, amounting to 23.158 billion drams, are returned. In that case, the effective price would be just 142 million drams (around $380,000).

The Ministry of Territorial Administration and Infrastructure declined to disclose the valuation formula or the company’s market value, stating only that Electric Networks of Armenia had long been on the list of assets slated for privatization. Discussions concluded on February 17, when the minister sent an official offer. Interim manager of the company Romanos Petrosyan also did not respond to a request regarding the market valuation and calculation methodology.

In January, Prime Minister Nikol Pashinyan said that an assessment of the market value of Electric Networks of Armenia was underway, but three months later the government has not disclosed it. According to the company’s 2024 report, its equity stands at about 137 billion drams (approximately $367 million).

Between 2017 and 2022, the company secured loans from international banks totaling at least $125 million, pledging 100% of its shares as collateral. This indirectly points to a substantial valuation. Most of the dividends (22.185 billion drams) paid to Samvel Karapetyan were approved by these international institutions.