Rīgas Transporta Flote                                          14.12.2005



AS “Rīgas Transporta Flote” board information on increase of share redemption price   



A/s “Rīgas Transporta Flote” board has informed that its long-standing major 

shareholder  “Lavinia Corporation” has made a mandatory redemption offer of 

a/s “Rīgas Transporta Flote” shares, which is valid from 2nd November to 21st 

December 2005. The share redemption price was set in the amount of 0.96 LVL 

pursuant to Law of Financial Instruments Market  and up to date the offer has 

already been accepted by a large number of a/s “Rīgas Transporta Flote” 

shareholders.  



On 13th December 2005 in newspaper “Latvijas Vēstnesis” was published an 

announcement of “Lavinia Corporation” about increase of share redemption 

price to LVL 1. The increased redemption price is equal to par value of each 

a/s “Rīgas Transporta Flote” share and is therefore the highest possible 

price that shareholders can obtain for a/s “Rīgas Transporta Flote” shares, 

particularly bearing in mind that on the day when redemption offer was 

announced, the weighted average market price in Riga Stock Exchange for the 

previous year was only LVL 0.55. Hence the premium which “Lavinia Corporation” 

currently offers for a/s “Rīgas Transporta Flote” shares significantly exceeds 

the normal market price of the shares as well as the pirce which “Lavinia 

Corporation” is legally required to pay pursuant to applicable legislation.   



The generous offer price for the shares is motivated by general intention of 

“Lavinia Corporation” to de-list a/s “Rīgas Transporta Flote” shares from 

public circulation rather than market value of these shares which, as 

mentioned, is almost twice lower than redemption price, explains the attorney 

of “Lavinia Corporation” in Latvia Artūrs Spīgulis, assistant attorney-at-law 

from law offices “Heidelberga”. “Lavinia Corporation” is a privately owned 

shipping company with no other publicly listed holdings and considering the 

increased holding of “Lavinia Corporation” in a/s “Rīgas Transporta Flote”, 

it wishes to bring a/s “Rīgas Transporta Flote” into line with other its 

companies, which are private. However, if within the scope of current 

redemption offer “Lavinia Corporation” will not manage to obtain enough shares 

to do that a/s “Rīgas Transporta Flote” shares will continue to be listed and 

to be traded at their natural market value that most likely will be lower than 

the offer price. Although “Lavinia Corporation” wishes to take a/s “Rīgas 

Transporta Flote” private, it does not intend to make any significant investments 

into a/s “Rīgas Transporta Flote” and there are no plans to issue a dividend, 

irrespective of a/s “Rīgas Transporta Flote” shares being in public circulation 

or not.                 



A/s “Rīgas Transporta Flote” board explains that increased share redemption 

price is also applicable to those shareholders who have already sold their 

shares for previous price LVL 0.96, therefore all shareholders that have 

accepted “Lavinia Corporation” redemption offer according to terms of 

redemption offer prospectus will be paid LVL 1 for each share sold on 27th  

December 2005. 

   

A/s “Rīgas Transporta Flote” board emphasizes that it considers increased 

redemption price to be very high and the maximum price shareholders can hope 

to achieve for their shares and therefore the board encourages shareholders 

to take this opportunity and to accept a price which is unlikely to be 

available outside the redemption offer period under normal Riga Stock Exchange 

market trading conditions. A/s “Rīgas Transporta Flote” board also reminds 

that there are only 6 business days left during which the offer may be open 

to shareholders therefore the shareholders are urged not to postpone the 

acceptance of offer until the last moment.       

 

Board member 

Oleg Kolosov