LPA sheds air shares

  • 1999-11-04
RIGA (BNS) - Latvian officials and representatives of Scandinavian
Airlines Systems met in Stockholm Oct. 29 to discuss transferring
state-held shares - a 51 percent stake - in Latvian carrier Air
Baltic over to Latvia's Transportation Ministry from the Latvian
Privatization Agency, said Janis Naglis, head of LPA.

Latvian Privatization Agency officials have already discussed the
transfer of state-owned shares in Air Baltic to the Transport
Ministry with Transport Minister Anatolijs Gorbunovs.

LPA's board deputy chairman, Viktors Sadinovs, previously explained
that the LPA has completed its work concerning the establishment of
Air Baltic and safeguarding the company's capital but believes it is
beyond LPA's competence to further participate in matters related to
the aviation business.

Sadinovs stressed that LPA will meet all its obligations towards Air
Baltic. Air Baltic's share capital will be increased by a total of
$19.5 million to $43,448,000. Then Latvia's government will hold
51.02 percent of Air Baltic's share capital, SAS will hold 38.16
percent, Swedfund AB - 5.23 percent, a Danish investment fund for
Central and Eastern Europe - 5.23 percent and Transaero - 0.35