Investors show interest in Liepaja metalurgs

  • 2013-06-12
  • From wire reports

Investors are now inspecting the books.

RIGA - Russian metallurgical company Dalpolimetall is one of the prospective buyers for the troubled Latvian metals company Liepajas metalurgs, the newspaper Vesti Segodna reported on June 10. “If we manage to reach agreement with the shareholders and the creditors’ club, we are ready to start production at the company in three to four weeks, Dalpolimetall council chairman Eduard Yanakov confirmed to the newspaper.

Vesti Segodna reports that the Russian company’s representatives have visited Liepajas metalurgs several times to meet with the company shareholders, Sergejs Zaharjins and Ilja Segals. Both shareholders have agreed to sell their shares to Dolpolimetall, whereas a meeting with the third shareholder, Kirovs Lipmans, is to be held in the near future.
A financial and technical audit is currently taking place at Liepajas metalurgs, says the newspaper.
“Our experts will prepare the final conclusion later this week, but at the moment it looks like a deal is possible. However, it is necessary that the creditors’ club assess attracting an investor from an economic standpoint, and is not guided by any other motives,” said Yanakov.

He also said that there had been several meetings with the creditors’ club’s financial consultant Prudentia Advisers, and Dalpolimetall has also sent a letter to the consultant, saying that it is interested in acquiring Liepajas metalurgs and in resuming the company’s operations.

Yanakov believes that the matter will not be reviewed swiftly, because the state is the largest Liepajas metalurgs creditor; however, the matter should not be delayed for too long because it would be damaging to Liepajas metalurgs.
Yanakov and Vadim Varshavski are the majority shareholders in Dalpolimetall. The company is one of the metallurgical complexes in far east Russia. Yanakov and Varshavski are also the founders of the Russki ugol and Estar companies.
Lipmans wants to see Russian corporation Rosenergomash involved in resuscitating Liepajas metalurgs, with its experience of rescuing similar companies. The company also has the necessary amount of scrap metal to ensure uninterrupted operations of Latvia’s largest metallurgical company, Vladimir Palikhata, the president of Rosenergomash, says in a letter to Latvian Prime Minister Valdis Dombrovskis (Unity).

The letter says that Rosenergomash is prepared to supply Liepajas metalurgs with the necessary amount of scrap metal to ensure uninterrupted operations. Furthermore, the Russian company is ready to provide a team of professionals who have the experience of work with similar companies in the C.I.S. countries, and a customer base to which Liepajas metalurgs products could be sold.

Additionally, the letter says that leading economists and people with major experience in production and technical areas in the metallurgical sector could be assigned to Liepajas metalurgs.
“We request that you consider our cooperation proposal and, should you be interested in pursuing cooperation, we are prepared to send a group of experts to the metallurgical company to perform an independent analysis of Liepajas metalurgs and draw up a strategy to help the company exit the crisis and continue successful operations,” Palikhata says in the letter.