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Opinion of the Management Board of joint stock company’s “Latvijas kuģniecība” in respect of expressing the company’s mandatory bid of share buy-out offer to minority shareholders and its impact on the company’s interests

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Opinion of the Management Board of joint stock company’s “Latvijas kuģniecība” in respect of expressing the company’s mandatory bid of share buy-out offer to minority shareholders and its impact on the company’s interests

july 24, 2017 / Latvian Shipping Company

On July 17, 2017, the majority shareholder of joint stock company “Latvijas kuģniecība” (hereinafter – LSC or Company) Vitol Netherlands B.V.  (hereinafter – Vitol), commenced the mandatory share buy-out offer (hereinafter – the Offer) for the remaining share capital of LSC. The Offer is made pursuant to the decision of the Financial and Capital Market Commission dated July 12, 2017. The Offer is made at EUR 0.71 per share.

The Management Board has evaluated the Offer. In evaluating the Offer, the Management Board has assessed whether the Offer represents a fair value for the shares of LSC that it relates to. The Management Board has resolved that the Offer at EUR 0.71 per share represents a fair share price of LSC. The Management Board notes that the price of the mandatory buy-out offers in Latvia is regulated by Article 74 of the Financial Instruments Market Law.

As a result of the share buy-out, the shareholder Vitol would be further increasing its interest in the share capital of LSC. The Management Board holds a view that a bigger proportion of the controlling interest in the hands of one shareholder should improve the efficiency of the Company’s operations and its further development. 

Therefore, the Management Board has resolved that the Offer is in LSC’s interests. The Management Board indicates that it is not aware that Vitol has planned to change the Company’s operating scope, the Company’s location, or to reduce its current staff.