RSE to run open single price privatization auction of JSC “Ventspils nafta” shares

03.10.2006 RIG

On October 5, 2006 the Riga Stock Exchange will run an open single price privatization auction of 40,345,556 state-owned Ventspils nafa shares. The auction model has been selected with the purpose to make the bidding as transparent as possible.

It is the first time the government has chosen this particular auction model to divest of its shareholdings. The model functions in a way that during the bidding period all investors’ bids entered in a special public order book will be displayed to the Riga Stock Exchange members on screens.

“We believe that the model the Government has selected for the sale of 38.62% state-owned “Ventspils nafta” shares will make the bidding process as transparent as possible, and will allow the investors to take all the advantages that auctions of this type are able to offer. We are sure that privatization via auction at the RSE will set a fair market price for the shares, and the investors will feel comfortable that they are bidding on equal terms and have equal opportunities. Though it is the first time we are running this particular auction model, the RSE can give full assurance that the trading system and the auction infrastructure are ready and compliant with the most stringent security standards”, says Daiga Auziņa-Melalksne, Chairman of Management Board, Riga Stock Exchange.


The procedure how the bids for the auction are to be submitted on October 5, 2006:
Investors may submit their bids to the auction via RSE members, considering that the members can enter the orders in the order book on the auction day between 10:00 and 12:00 (Latvian time). Only bids with a price not less than LVL 1.81 per share will be admitted to the system. The number of shares in one bid should not be more than 40,345,556 and not less than 19,415.

More detailed information about JSC “Ventspils nafta” privatization regulations and auction procedure is available on the websites of advisers “Parekss banka” (www.parex.lv), “Ieguldījumu brokeru sabiedrība “Suprema”” and “Suprema Securities” (www.suprema.com), as well as of Privatization Agency (www.lpa.bkc.lv ).



For more information, please contact:
Krista Grīntāle, Head of Corporate Communications
Riga Stock Exchange
Phone: +371 7212431