Shareholders of JSC “Latvian Shipping Company” will decide about reduction of the share capital

For shareholders of JSC “Latvian Shipping Company” to be able to decide about distribution of the possible profit in dividends, if the circumstances and the commitments would allow that, pursuant to the opinions of independent experts, the company's Management has proposed in the meeting on June 11 to decide to cover the accumulated losses by reducing the company's share capital. It is a standard procedure supported both by experts of the audit company “Pricewaterhouse Coopers” Ltd and by consultants of the international law office “EvershedsBitans”.

| Source: Latvijas kugnieciba Latvijas kugnieciba

During the shareholders’ meeting it is proposed to reduce the share capital of JSC “Latvian Shipping Company” by EUR 220 million to EUR 60 million, thereby reducing the nominal value of a bearer share from EUR 1.4 to EUR 0.3, as well as to set the calculation date for reduction of the share capital on September 1 of this year. 

“In the course of several years JSC “Latvian Shipping Company” has accumulated considerable losses. Theoretically there is a possibility to cover these losses from the possible future profit of the company, however, after carrying out due diligence with independent experts, the company’s Management Board is proposing to reduce the share capital, which is a standard procedure in such cases. For shareholders that would mean a possibility to gain real income from the invested capital in the future, when circumstances would allow that, or to decide about commencement of a new investment program, which would most likely mean increase in the investment value,” points out the Chairman of the Management Board of JSC “Latvian Shipping Company” Robert Kirkup.

At the same time, the management of JSC “Latvian Shipping Company” emphasizes that the market (stock exchange) price of the company’s share is already not corresponding to its nominal value. The price of one share in the stock exchange in the morning of June 10 of this year was EUR 0.468. Therefore, by reducing the nominal value of the company’s shares, there are no grounds to deem that the share price will change substantially in the regulated market. The company’s management predicts that as the financial situation of the company improves, the share price in the stock exchange might grow again.

The agenda of the regular shareholders’ meeting of JSC “Latvian Shipping Company” to be held on Wednesday, June 11, is available here:

http://www.lk.lv/en/aktualitates/news/notification-on-the-convocation-of-the-annual-shareholders-meeting-of-joint-stock-company-latvijas-kugnieciba-2/

About JSC “Latvian Shipping Company”

In the medium-sized and handy tankers categories JSC „ Latvian Shipping Company” (NASDAQ OMX RIGA: LSC1R)  is among the leading ship owners in the world, and in terms of transport volumes of petroleum products it is also in a leading position among similar companies in Northern Europe. It owns 16 modern ships, employing more than 700 professional and highly qualified seamen from Latvia. The average age of the fleet is 6.5 years. All ships have received ISM (International Safety Management) certificates. 

Elīna Dobulāne, Communications Consultant

JSC "Latvian Shipping Company"

Phone: +371-25959447

E-mail: elina.dobulane@vnafta.lv

Latvian Shipping Company www.lk.lv/lv/