Information on the cash auction of "Latvijas kuģniecība" (LASCO) shares

09.09.2003 RIG

On September 15, the Riga Stock Exchange will hold a public offering for cash of JSC “Latvijas kuģniecība”  (LASCO) 11 515 086 shares. The offering represents 5.75% of the company’s share capital. The minimum price of a share is set by the Latvian Privatisation Agency at 0.34 LVL.

Every investor may participate in the auction if applying for purchase of the stocks at licensed banks and brokerage companies – members of Riga Stock Exchange.

Orders will be accepted at the Riga Stock Exchange from September 9, 2003 till September 15, 14:00 (local time). The orders shall be submitted in the procedure specified in the Riga Stock Exchange Enforcement Note on Trading and Quotation, provisions for special quotation, as well as according to the procedure approved by Management Board of Latvian Privatisation Agency “Regulations for cash offerings of public shares”.

JSC “Latvijas kuģniecība” securities code is LV0000101103. LASCO shares are listed on the Riga Stock Exchange Official list.

Special rules for the auction:

1. Only bids shall be accepted;
2. Minimum price of a share is set at 0.34 LVL;
3. Only bids with a specified price shall be accepted;
4. Orders are not accepted through I-broker service.

Settlement date for the deals at the auction shall be on September 18, 2003.

On processing the received data, the stock exchange shall calculate:

1. Market price of a share, expressed in lats with the precision of one santim;
2. The number of shares allocated to winning bidders.
3. All bids where the specified price is above the price fixed at the auction are executed in full. All bids where the specified price is below the price fixed at the auction are not executed.
4. The bids where the specified price is equal the price fixed at the auction may be partly executed according to distribution coefficient Ka. The coefficient is calculated according to the formula:
   Ka=(A-B)/A(%), were:
   A – the number of securities at the bids where the specified price is equal to the price fixed at the auction;
   B – difference between A and the residue of securities at the fixed price.

For more information, please contact:
Krista Grintale
Corporate Communications Director
Riga Stock Exchange
Phone: +371 7212431