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RIGA, Dec. 5 (Xinhua) -- Luxembourg-based Marguerite Fund is selling its stake in Latvian gas transmission and storage operator Conexus Baltic Grid (Conexus) to a fund backed by Japanese Marubeni Corporation, Latvian media reported on Thursday citing representatives of the two companies.

Under the deal concluded between Marguerite Fund and MM Capital Infrastructure Fund 1, which is controlled by Marubeni, the Japanese fund will acquire a 29.06 percent stake in Conexus currently held by Marguerite. The price of the deal has not been disclosed.

The parties to the transaction note in their statement that the deal is being concluded in accordance with Latvia's energy and national security laws.

The buyer of Conexus shares, MM Capital Infrastructure Fund 1, is operated by MM Capital Partners, established in 2018 by Marubeni Corporation, Mizuho Bank and Asset Management One Co. Ltd. to operate and manage funds specialized in equity investments in infrastructure assets outside Japan.

On Dec. 4, Russia's natural gas giant Gazprom announced it will hold an auction on Dec. 30 to sell off its 34.1 percent stake in Conexus at a starting price of 70 million euros.

Gazprom and the Marguerite Fund must be disassociated from Conexus because they are also shareholders of Latvian gas utility Latvijas Gaze, and under European Union regulations gas trade has to be separated from gas transmission and storage operations.

Jan. 1, 2020 is the deadline by which Gazprom and the Marguerite Fund must sell their shares in Conexus.