Linstow acquired 50% of a Arco Vara development project in Latvia
According to an agreement signed on 29.06.07 Arco Vara AS's subsidiary Arco
Investeeringute AS and Arco Vara's head of Latvian operations Mr. Viktors
Savins continue the Bišumuižas II development project with a third counterpart,
Linstow Baltic SIA, who acquired a 50% stake in the Bišumuižas nami SIA.
Arco Investeeringute AS and Mr. Viktors Savins sold respectively a 40% and 10%
share in the company to Linstow for the nominal value (respectively 800 LVL and
200 LVL) and after the transaction Bišumuižas nami SIA will within four months
pay Arco Vara AS and Mr. Viktors Savins EUR 19.22 mln for the Bišumuižas II
development project - EUR 15.376 mln to Arco Vara AS and EUR 3.844 mln to Mr.
As the result of the transaction Arco Vara group will receive consolidated
revenue of approximately EUR 7.5 mln in the second quarter. Arco Vara's
consolidated and unaudited net profit in the first quarter of 2007 was EUR 4.4
mln. Arco Vara will publish the full financial results for first half of 2007
in Week 35.
The sold project's value in the group's consolidated accounts reflected the
acquisition price of EUR 0.89 mln.
Information about the conditional sales agreement reached between the parties
on May 18th 2007 has been previously published in the listing documents of Arco
After the closed deal Arco Investeeringute AS retains a 40% stake in Bišumuižas
nami SIA and Mr. Viktors Savins retains a 10% stake. The transaction will
require approval from the Latvia's competition council to be enforced.
According to available information Bišumuižas nami SIA is not involved in any
judicial disputes or court proceedings. As the head of Latvian operations of
Arco Vara was party to the transaction as the seller of a separate 10% stake,
the transaction qualifies as a transaction with a connected person according to
Tallinn stock exchange regulation.
Bišumuižas nami SIA acquired the Bišumuižas II development project on 24.04.07
by purchasing Sportings Riga SIA from Arco Vara AS and Viktors Savins. The
material property of Sportings Riga SIA is a property in Riga located on Zalu
Street 8, size 111 596 m2. It is proposed to possibly develop 1085 apartments
on the property.
Linstow Baltic SIA's parent company Linstow AS is part of the Anders Wilhelmsen
Group and a leading real estate developer in Norway, whose one major focus is
developing hotels and retail premises in the Baltic States and in Scandinavia.
1 EUR=15,6466 EEK
1 EUR=0,7028 LVL
1 LVL=22,4779 EEK
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