VILNIUS - Hermis Capital, a leading investment company, has transferred nearly all its interest in Snaige, the Baltics' only refrigerator producer, to subsidiary Survesta to cover debts. As a result of the 85 million litas (24.6 million euro) transaction, Survesta has taken over 22.76 percent of Snaige.
"Hermis Capital owed that amount to Survesta, which lent those funds after the profitable sale of shares in Rokiskio Suris. Now we repaid the debt and settled the accounts," explained Darius Janulevicius, Hermis Capital co-owner and CEO.
Hermis Capital retained approximately 1 percent of Snaige, while Survesta, which was established to pursue investments into Rokiskio Suris, would remain on the list of Snaige's shareholders, Janulevicius added.
Late in September, Hermis Capital held 24.61 percent of Snaige.
Earlier this year, Hermis paid 115 million litas for 36.39 percent in Norway's Kitron, an electronics company, which is active in the Norwegian, Swedish and Lithuanian markets.
Moreover, the company channeled part of its investments into Russia's oil and gas industry. Early in 2005, Hermis Capital extended to Timan Oil & Gas, a U.K.-registered oil surveillance and production company in Russia, several equity related loans equal to 3.22 percent of company's equity.
Snaige reported 19.7 million litas in net earnings for the first nine months of 2005, a decline of 15.3 percent from the year-earlier figure of 23.35 million litas.
As of late September, customers of Estonia's Hansabank and SEB Vilniaus Bankas held 46.69 percent and 7.57 percent of Snaige, respectively.