Krajbanka buyer: no plans yet

Doxa Fund Limited, an investment company registered in the British Virgin Islands, that recently bought a 25 percent stake in the savings bank Latvijas Krajbanka at an auction, has no specific plans concerning its 6.2 million euro stake or possible cooperation with other shareholders.

A representative of Doxa and its sponsoring bank, Investment Bank Luxembourg S.A., on May 30 told journalists in Riga that the company would decide on future plans after an inspection of the bank and talks with other shareholders.

Sylvain Imperiale, director general of Investment Bank Luxembourg S.A. and a director at Doxa, said Krajbanka's new investors had not yet met with any other shareholders.

He said Doxa had long-term plans for Latvijas Krajbanka and may consider buying more shares in the bank for a good price.

Doxa officials said they invested in the bank to gain a foothold in the financial services market before Latvia joins the European Union.

Imperiale said Doxa was an open investment fund managing assets for various investors. He said Doxa had many large European investors, but none is from Latvia.

Vilis Dambins, the Latvian representative of the Dutch company Macasyng Holding B.V., a shareholder in Latvijas Krajbanka, said earlier that Doxa representatives would visit Latvia to eliminate fears that the company was a hazy offshore concern.

Doxa Fund Limited was the only bidder at the auction of the state-held 25.01 percent stake in Latvijas Krajbanka that took place on May 17. The bid was placed at the minimal starting price.

Doxa is quoted on the stock exchange in Bermuda.

Latvijas Krajbanka is the country's seventh largest in terms of assets.