Sale of subsidiary company

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| Source: Pro Kapital Grupp
multilang-release

Tallinn, 2013-12-13 07:12 CET (GLOBE NEWSWIRE) -- JSC Pro Kapital Latvia which belongs 100% to AS Pro Kapital Grupp has on 12 December 2013 signed an agreement on selling its subsidiary company LLC Pasaules Tirdzniecības centrs "Rīga" (WTC Riga) to Belveron Holdings Limited.

JSC Pro Kapital Latvia owns 100% shares of LLC Pasaules Tirdzniecības centrs "Riga". The registered, paid up and eligible to voting share capital of LLC Pasaules Tirdzniecības centrs "Riga" is 1’192’777 LVL, divided into 1’192’777 shares with the par value of 1 (one) LVL. This transaction is not considered a transaction with connected persons and members of the supervisory board and management board of AS Pro Kapital Grupp and its subsidiaries are otherwise personally not interested in the transaction.

Execution of the documents necessary for concluding the procedure of transfer of shares and change of the Board of LLC Pasaules Tirdzniecības centrs "Riga" shall be performed as of 1 January 2014. The transaction amount is the equivalent of the LLC Pasaules Tirdzniecības centrs "Riga" equity on 31 December 2013 (the share capital of the company (1’192’777 LVL) and its profit) plus 200 000 EUR. The equity part of the transaction price will be set off with the liabilities of JSC Pro Kapital Latvia. From the 200’000 EUR part of the transaction price 25’000 EUR are paid within 5 (five) business days as of the date the documents for registering the transfer are submitted to the Commercial Register, and remaining part upon the occurrence of certain pre-conditions agreed in the agreement.

LLC Pasaules Tirdzniecības centrs "Riga" operates as a management company for the maintenance and administration of state owned office building in Riga, on Elizabetes Str.2. authorized by a lease agreement with JSC “Valsts nekustamie īpašumi”  with due date on 31 March, 2014.  LLC Pasaules Tirdzniecibas Centrs RIGA owns 70% of LLC Prokurs shares, which will be transferred to JSC Pro Kapital Latvia on 28 December, 2013.

Current Management Board members of LLC Pasaules Tirdzniecības centrs "Riga" are Olga Rudzika and Ilona Ahramoviča. As of 1 January, 2014 there will be no valid contracts between AS Pro Kapital Grupp and LLC Pasaules Tirdzniecības centrs "Riga".

Paolo Michelozzi, CEO of Pro Kapital Group, comments that AS Pro Kapital Grupp is focusing on its core business - development of its own real estate projects - mainly residential and retail. The management of AS Pro Kapital Group expects that selling of LLC Pasaules Tirdzniecības centrs "Riga" will not affect its business activities in Latvia.

LLC Pasaules Tirdzniecības centrs "Rīga" key figures:

Th.EUR                   
                                                     2010             2011              2012           9 M 2013
                   
Total Assets                            11,166,636    11,772,736    12,110,838    12,277,592
Total Equity                             10,009,489    10,261,302    10,491,852    10,652,264
Share Capital                            1,680,441      1,705,185      1,709,584     1,697,420
                   
Sales                                            833,465         782,885         904,551        723,715
Net result                                      391,273         102,970         200,710        232,845
                   
EPS                                                    0.33               0.09               0.17              0.20
 

         Iveta Vanaga
         Head of Investor Relations
         Phone: +37129239064
         E-mail: iveta@prokapital.lv