Considering requirements of the Law on Financial Instruments Market, AS Latvijas kuģniecība (hereafter – LSC or Company) provides additional information on a significant transaction with the related party:

  1. Related party - Vitol Netherlands B.V., registration number: 24296371, registered in the Netherlands.
  2. Vitol Netherlands B.V. is LSC shareholder which owns 97% of shares with voting rights and therefore has decisive influence on the company.
  3. LSC has issued a short term loan to Vitol Netherlands B.V. in the amount of 284 million EUR with maturity 30 September 2018, interest rate 0.5% per annum including an option to terminate the loan before the maturity in order to partly cover the Company’s group financial obligations.
  4. LSC successfully completed its capital rising process on December 8, 2017. The purpose of the share capital rising was partly to cover the Group’s financial obligations from the proceeds received from the issue of shares and to strengthen the competitiveness of the Company. Considering the fact that the share capital rising process is complicated and time-consuming it was carried out in due time. The nearest balloon payments in total for 28 million USD for loans issued for the financing of the Company’s vessels are due in June and July, 2018. Furthermore, considering specifics of the shipping market and investment amounts required for vessels acquisition, decision making in order to strengthen the competitiveness will take some time. The loan transaction has a positive impact both on the LSC commercial and financial results.
  5. The LSC shareholders which are not involved in the transaction will benefit from interest payments received from the loan as short-term cash management in the commercial banks are with 0% interest rate or in some cases even negative interest.
  6. Positive LSC Audit Committee opinion was received on the transaction.

 

Additional information:

Elīna Dobulāne,

Communications Consultant

JSC Latvian Shipping Company

Phone: +371-25959447

Email: EDobulane@golin.com

Web: http://www.lk.lv/en/