Summed up

  • 1998-09-03
TALLINNA KULMHOONE DESIRES LISTING ON TSE: The cold storage company Tallinna Kulmhoone applied for a listing on the Tallinn Stock Exchange's supplementary list on Aug. 26. Evald Karu, Tallinna Kulmhoone's financial director, said the company is seeking a listing because it will substantially improve the company's reputation. Karu said he finds it inadvisable to seek inclusion in the main list in the present situation. "Kulmhoone is too small a company for this and its shares have relatively low liquidity," he said. The company has 331 shareholders, and its average market value in the past six months surpassed 100 million kroons ($7.14 million). (BNS)
DUTCH RUN KAUNAS FREE TRADE ZONE BUREAU: The Antwerp-based development and investment company AOI NV opened a Kaunas Free Trade Zone (FTZ) bureau in Karmelava near Kaunas. The international company won a tender of the Kaunas Region Administration last spring to develop a business plan and zoneÕs status. AOI NV Director General Freddy Opsomer said Kaunas has a good chance to become a strategic land terminal in Europe. According to Opsomer, a key factor for the success of the zone is that it is located on the territory of an international airport and that Lithuania has easy access to Russian railroads. The Dutch company is prepared to finance the construction of a modern infrastructure at the FTZ in the first phase of its development. The infrastructure facilities should occupy an area of about 60 hectares. A land lease agreement with the AOI NV was signed for a period of 49 years. (BNS)

BETTER PARKING IN RIGA: Two construction companies, Nilda and RE & RE, signed a contract for the construction of a multistory parking lot in central Riga on Baznicas street. The total cost of the project is expected to reach about $4 million. The idea to build a multistory parking lot belongs to the former prime minister and now Nilda's director, Maris Gailis. Gailis said the construction is likely to start in late September and is expected to be completed in a year. The building will house offices, shops and a garage for 297 vehicles. Its construction will be financed by the investment fund New Century Holdings. The plot of land on which the parking lot will be built was previously owned by the Old St. Gertrude's Church, which initially intended to participate in the project by investing the piece of land. The church representatives changed their mind later, however, and sold the lot of land to Nilda early this year. (BNS)

WILL BALTIKA GET VIRULANE?: The Tallinn-based garment manufacturer Baltika wants to buy 51 percent of shares in the Virulane sewing factory. Virulane's council supported Baltika's offer, but Virulane manager Liina Kalda said each shareholder will have to decide whether to support this proposition. Virulane has around 200 shareholders among present and past workers. The stock capital stands at 8.6 million kroons ($614.200) and the shares have a par value of 200 kroons. Kalda did not say how much Baltika offered per share. Baltika's Board Chairman Meelis Milder said the company believes that by giving Virulane access to its sales structures and retail outlets, it can ensure the sewing factory's continued stable development and profitability. Virulane is Estonia's biggest overcoat producer with a yearly output of around 150,000 men's and womenÕs coats. Kalda said two-thirds of the output is exported to Finland, Sweden, Norway, Latvia and Lithuania. (BNS)

INGMAN FOODS TO ACQUIRE SIAULIAI DAIRY: The Finnish company Ingman Foods is planning to acquire a 51 to 70 percent stake in the northern Lithuanian dairy Siauliu Pienas. Ingman Foods Director Eino Lindfors said a final decision on the planned investment will be made in September. Ingman Foods has a controlling block of shares in another Siauliai based company - Ingman Vega ice cream producer. Ingman Foods is ready to invest about 15 to 20 million litas ($3.75 to 5 million) in new technologies at Siauliu Pienas. The reconstruction would be aimed at expanding the range of fermented cheese and non-skim milk products. Siauliu Pienas Director General Stanislovas Ambrasas said the Finns would buy into the business by purchasing a new equity issue. The Finnish partner is expected to contribute to Siauliu Pienas' floating capital. (BNS)

IMPORT DUTY ON MARGARINE TO JUMP: The Latvian parliamentary budget and finance committee supported a proposal to raise the import duty on margarine while drafting amendments to the law on customs tax for the second reading. Latvian dairy companies have asked the import duty on margarine be raised as butter produced in Latvia cannot compete with the much cheaper margarine. The committee also resolved to retain the 100 percent import duty on scrap metal by the end of 2000. (BNS)