Fish cannery might change hands

  • 1999-02-18
RIGA (BNS) - After the Russian crisis, the Kaija fish cannery became a burden for the Ave Lat Grupa food concern. It is now considering selling its stake in the cannery to P Parking which expressed interest in the troubled company.

The Stock Market Commission authorized the purchase of shares in Kaija by P Parking Feb. 8, but Ave Lat and the Latvian Privatization Agency still have to sign under the deal.

Ave Lat owns the majority stake in the cannery which incurred considerable losses due to the Russian crisis. Ave Lat Grupa's spokeswoman Rita Voron-kova said the group has not decided to change the ownership of the controlling stake in Kaija yet but is negotiating with potential buyers.

"We are currently considering such a suggestion," she said admitting that the group has had talks with P Parking.

The group will also have to obtain an authorization from the Latvian Privatization Agency to sell its shares in Kaija fish cannery, said LPA Director General Janis Naglis.

He explained that Kaija's privatization had not been completed yet and therefore the LAP board will have to decide whether it will use its right of first refusal concerning the shares.

If the group sells its stake to P Parking, Kaija will become a joint Latvian-Lithuanian enterprise, said Kaija's Director General Andris Feldmanis.

He said that P Parking was acting as an intermediary in the deal with Ave Lat group.

It is expected that after the change of ownership, Latvian and Lithuanian businessmen will each hold 50 percent of shares in Kaija.

Feldmanis said that the Lithuanian party was represented by four companies providing the required financing. He would not specify the names of the Lithuanian and Latvian companies involved in the project.

He also abstained from naming a possible amount of the deal or investments to be made into Kaija's development and orientation towards other markets.

He said that Russia and the Middle East as well as the Baltic states and Europe could be the likely sales markets for Kaija's products.