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Vehicle parts company buys German firm

  • 2000-12-21
RIGA (BNS) - Daugavpils Pievadkezu rupnica (DPKR, Daugavpils Motor Chain Factory) has acquired 100 percent of capital shares in the German company Meteor Kettenfabrik GmbH for 100,000 Deutsche marks.

DPKR said in a statement to the Riga Stock Exchange that it has acquired two capital shares of the company, paying DEM 50,000 for each. The agreement on the acquisition of the German company's capital shares is for the moment being looked by Germany's state institutions.

The operations of the German company are, like DPKR's, related to production of vehicle parts.

DPKR council chairman Vladislavs Driksna said that DPKR acquired the German company in order to expand the sales of the company's products throughout Europe. Driksna has said previously that DPKR planning to export some 70 percent of its output to Europe.

DPKR has borrowed 1.3 million lats ($2.09 million) from Parex Bank, for which a pledge agreement has been concluded. The company said the pledge agreement with the bank was entered into Nov. 10, 2000, for a period of five years. A part of the loan will be used to update DPKR itself.

In total, DPKR has issued 7.4 million shares, of which 7.392 million are traded publicly. A 48.85 percent stake in DPKR is held by the company Ditton Nams, which in August 2000 purchased it from Baltijas Tranzitu Banka.

DPKR's profit in 1999 was 266,000 lats on a net turnover of 6.736 million lats, while this year the company hopes to earn a profit of 275,000 lats on a turnover of 6.6 million lats.

DPKR's shares are quoted on the second list of the Riga Stock Exchange. Its share capital is 7.4 million lats.