The process of nationalizing Electric Networks of Armenia (ENA) has reached one of its final stages, according to the company’s temporary administrator, Romanos Petrosyan, who outlined the government's next steps, Factor.am reported.

According to Petrosyan, since May 25 the government and relevant state agencies have been working on a draft decision to declare 100 percent of ENA’s shares a matter of overriding public interest.

“Since May 25, the government, together with the relevant agencies, has been working on a draft decision to launch the process of recognizing 100 percent of ENA’s shares as serving an overriding public interest,” he said.

Petrosyan stated that in the coming weeks the government intends to formally approve the public-interest designation process, defining all subsequent stages and procedures related to nationalization.

According to his presentation, the process will involve several phases. First, a licensed resident organization must conduct a valuation of the company and its shares.

“The procedures will define how a licensed resident appraiser will assess the company and its shares. After the valuation, compensation will be paid to the owners in accordance with legal procedures, based on the assessed value plus an additional 15 percent premium,” he said.

Petrosyan noted that upon completion of the process, ownership of 100 percent of ENA’s shares will be officially transferred to the Republic of Armenia through state registration.

The government will then apply to the Public Services Regulatory Commission to restore the electricity distribution license or obtain a new one.

According to Petrosyan, the authorities opted for this approach after the Karapetyan family, the company's owners, declined the state's proposal. He said the government had offered 23.3 billion drams, on the condition that 23.158 billion drams in dividends paid in recent years be returned, which would have resulted in a net payment of approximately $380,000.

Petrosyan recalled that the deadline set by the Administrative Court for the owners to respond to the offer and complete the share transfer transaction expired on May 25.

“Since no transaction took place and no meaningful initiative was shown by the owner, although there was some correspondence that is not public, the fact remains that no deal was concluded,” Petrosyan explained.

The Armenian government has announced plans to initiate the process of declaring ENA’s shares an overriding public interest and transferring them into state ownership. The government offered approximately $380,000 to acquire the company from the family of Samvel Karapetyan. Karapetyan described the proposed amount as unacceptable, and negotiations with the government did not take place on May 25.