Sell-off plan for Latvijas Krajbanka

  • 2003-01-30

The Latvian Economy Ministry filed with the government on Jan. 23 a proposal for selling the state-owned shares in Latvijas Krajbanka, the nation's fifth largest bank in terms of assets, in a single block for cash, the ministry reported.

The recommended minimal share price is 1.21 lats (1.95 euros) per share.

The proposal calls for selling 25.01 percent of Krajbanka's present paid share capital in a single block for cash, as well as offering 6.6 percent to the bank's current and former employees and transferring 0.51 percent into the privatization reserve.

The proposal set the recommended price for shares offered to employees at 1 lat per share, with the option of using privatization vouchers as the means of payment.

Krajbanka officials said they were satisfied with the ministry's proposal to sell capital stock in a single lot for cash. "It is vital that the bank acquires a serious investor capable of investing required funds into the bank's development," the bank said in a statement.

The Latvian Privatization Agency had submitted seven models for Krajbanka's privatization to the Economy Ministry.

At present 32.12 percent of Krajbanka's paid share capital of 9.10 million lats is under state ownership, while the remaining equity is held by Ventspils-based companies and private individuals.