Klementi shareholder bailing out

  • 2006-04-19
  • From wire reports
TALLINN - Bryum Estonia, one of the biggest shareholders in the clothes maker Klementi, has reduced its holding in the company from 27.66 percent to less than 5 percent, according to information from the stock exchange. Indrek Rahumaa, board member of Bryum, told the Baltic News Service that Bruym's holding declined in connection with a loan guaranteed by stocks. He said the change reflected in the Klementi shareholders' register on April 17 did not mean that Klementi's main investors were giving up their holdings in the company.

Still, the garment maker has been experiencing financial trouble for several quarters in a row, and sales slid considerably last year. Klementi earned a profit of 5 million kroons (320,000 euros) in the final quarter of 2005 and ended the year with a loss of 3 million kroons, compared with a loss of 11.9 million kroons the year before.
Net sales by the Klementi group in 2005 totaled 116.6 million kroons, compared with 128.6 million kroons in 2004, the company reported in February.
The owner of Bryum Estonia is John Bonfield, who simultaneously owns one of Klementi's major owners, Alta Capital.
According to the shareholders' register, 18.34 percent in Klementi now belongs to Hansapank. Lauri Lind, head of the bank's stock markets division, said the bank would sell the holding to a client.

This resale, according to Rahumaa, meant that Bryum, the previous owner, would buy back the shares.
Major clients in Klementi include, side by side with Hansapank and a number of investment funds, the companies Alta Investments I, Alta Capital and Alta Holding. They control a total of nearly 35 percent of shares in Klementi.