Today  Privatisation  Agency Management Board approved participation of

Williams  de Broe, an international investment bank, in arrangements of

cash  offer  of 51% of state-owned shares in shipping company "Latvijas

Kuģniecība". The placement is lead managed by the Riga Stock Exchange.



Guntars Kokorevičs, President, Riga Stock Exchange:



"We are satisfied that we have succeeded in selecting Williams de Broe,

an  international  investment  bank,  to  work together with us at cash

offering   of   "Latvijas  Kuģniecība"  shares.  Williams  de  Broe  is

experienced in similar deals all over the world, including the Baltics.

This  was the best and most profitable among several other proposals we

received  from  international investment banks. International placement

of  "Latvijas  Kuģniecība"  shares  would  be hardly possible without a

support  from  an international advisor, and international placement is

crucial for maximisation of revenues to the state".



Williams de Broe is an international investment bank founded in 1869 in

London.  It  is  80%  owned  by ING Group, and 20% - by Management. ING

Group  is  among  the top 10 financial institutions in Europe and among

the top 20 in the world. Williams de Broe is



The  leading  investment  company  specialising in the Baltic secondary

markets.  Its  experience  in  the Baltic markets are associated mainly

with  activities  in  Estonian  and  Lithuanian  corporate  governance:

Williams  de  Broe  took  part  in  international  offerings  of 35% of

Lietuvas  Telekomas  (Lithuania)  shares,  Bankas  Hermis  (Lithuania),

Rokisko Suris (Lithuania); in Forexbank (Estonia) IPO.



Fees: the agreement between Privatisation Agency and the RSE, signed on

January  23,  2002,  stipulates that the RSE receives a retainer fee of

LVL  100,000,  plus  a  success  fee of 1.73% of the placed volume. The

international investment bank will receive a retainer fee of GBP 50,000

per month, and a success fee of 1.72%. Thus, total fees for sale of 51%

or  102  million  shares  of  "Latvijas  Kuģniecība"  amount  to  3.45%

(retainer  fees  not included). The most common international fee rates

would  be  between  5-6%,  occasional 7% and more of transaction volume

(according to magazine International Financing Review ).