Ripplewood investors interest only short term

  • 2014-10-03
  • From wire reports, RIGA

Ripplewood Holdings says it would like resell the Citadele bank it is planning to buy after one year, though the government wants to set the term at five years, Latvian Prime Minister Laimdota Straujuma (Unity) told the LNT television channel on Oct. 1, reports LETA.

She said that the resale term is one of the problems that are still being discussed.

Straujuma repeatedly stressed that she has no doubt about the reputation of the investors - "they are private individuals from the United States who are not hiding behind an offshore and will benefit from the bank's resale process."

But considering that Ripplewood has been touted by the government as a long-term investor who will rebuild the bank, this comes as somewhat of a surprise, and brings into question as to what really is their intention in Citadele.

Straujuma previously said that the total price of Citadele bank shares is 98.6 million euros, thus 75 percent of shares, held by the government, would be sold for about 74 million euros. Discussions on sale conditions are still in progress, she added.

The government has accepted Ripplewood Holdings offer which stipulates that 25 percent of the bank's shares will be acquired by Ripplewood Holdings, 50 percent by currently undisclosed investors, while the European Bank for Reconstruction and Development will keep its 25 percent stake in Citadele.