Factory sold off to private owner

RIGA (BNS) - The Latvian Privatization Agency (LPA) on Saturday auctioned state-owned capital shares in Rigas Farmaceitiska Fabrika (Riga Pharmaceutical Factory, Riga FF) to a private individual Irina Bergere.

Bergere was the only bidder at the auction, so a 28.01 percent stake, 185,677 shares, were sold for the initial price of 185,677 lats ($297,000).

According to the auction rules, payment for the block of shares should be made in three years with 40 percent in lats and 60 percent in privatization vouchers.

Bergere's representative Vitalijs Judins said Bergere is set to propose in the general meeting of the company's shareholders several proposals for developing the factory's production.

The plans include building a new production facility and significantly expanding the range of products produced by the company. Judins said plans also include launching production of several modern products demanded on the world market.

Bergere is planning to invest tens of thousands of lats in the company's development, said Judins. He also said there are no plans to cut the company staff.

They are also planning to acquire the Good Manufacturing Practice certificate from Britain's Medical Products Agency.

Shares in Riga FF are quoted on the free list of the Riga Stock Exchange. In 1999 the company's profit was 1,387 lats on a turnover of 847,000 lats while the profit target for this year is 60,000 lats and the turnover target 1 million lats.

The block of shares in Riga FF was sold off to private hands before but the previous buyer of the company failed to pay for the acquisition.