Klaipeda Transport Fleet sold

Jan 06, 2000

The sales agreement over the stock package held by the state was
signed at the state property fund on Dec. 31. The fund reported that
the consortium is obliged to pay 83 million litas ($20.75 million)
for 80 to 89 percent of the state-owned Klaipeda Transport Fleet Co.
shares within 30 days of the signing of the privatization deal.

According to SBA president Arunas Martinkevicius, although the
consortium has pledged to invest 50 million litas into the company in
the next three years, investments are likely to be much higher as the
fleet needs capital renovation. The privatisation deal also obliges
the buyer to secure at least 70 percent of current jobs, estimated at
over 600, and carry out its investment proposals.

The authorized capital of the Klaipeda Transport Fleet Co. is
estimated at over 130.8 million litas. The consortium owns 105.8
million litas worth face value shares, with the remainder held by
small stock-holders. Profitability of the authorized capital of the
company is 17 percent.

The Klaipeda Transport Fleet Co. owns 16 refrigerator-ships for
transporting food products, fruit and vegetables The vessels of the
new owners will retain their function of carrying food products and
other goods. The shipping company J.O. Tankers is a subsidiary of the
Norwegian company J.O. Odfjell set up in 1914. J.O. Tankers has been
engaged in the shipping business for 20 years and has a fleet of 42
different sea-vehicles.

The privatization deal foresaw that ships of the Klaipeda Transport
Fleet Co. shall be registered pursuant to ship registration rules
approved by the government and following procedure set out by
international agreements.

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