Construction companies "Velve" and "Riga-Moduls" merge
Construction companies "Velve Ltd." and "Riga-Moduls Ltd." have merged, their common goal is to become a leading construction company in Latvia, the newspaper "Dienas Bizness" reports today.
Construction companies "Velve Ltd." and "Riga-Moduls Ltd." have merged, their common goal is to become a leading construction company in Latvia, the newspaper "Dienas Bizness" reports today.
"Moduls-Riga" has purchased 75 percent of "Velve" shares, the remaining 25 percent are held by Andris Kreislers, a co-owner of "Velve".
According to data at Latvian Construction Association, "Velve" was the 15th biggest construction company in Latvia last year in terms of construction work amounts, "Moduls-Riga" was 19th. The newspaper specifies that construction work makes up an average 50 percent of "Moduls-Riga's" annual turnover. Retail of construction materials accounts for the other 50 percent of the company's turnover.
"Dienas Bizness" points out that both companies have been cooperating in implementation of various projects for several years, besides, they established company "Velve, Moduls-Riga" already in 2001 for construction of four sports arenas.
According to "Moduls-Riga" deputy director general Maris Martinsons, both companies' names will not be changed as a result of the merger. Both are recognized on the market as reputable companies, therefore changing companies' names would not be useful.
There are also no plans about uniting the financial resources of both companies, however, both will have a consolidated balance later, Martinsons admitted.
Andris Kreislers explains the merger by the situation on the construction market within the common European Union (EU) market and outside the EU.
According to Martinsons and Kreislers, they want to make "Velve" and "Moduls-Riga" the leading construction company in Latvia.
"Velve" and "Moduls-Riga" will continue taking part in construction tenders, but much attention will be paid to several real estate investment projects in the near future, which both companies will implement jointly.
Both companies have recently purchased a number of land plots to launch operations on the real estate market. Their construction program for the coming two-three years is worth about LVL 100 million, Martinsons said.
The newspaper reminds that "Moduls-Riga" is one of the eight units of the German concern "Modulex GmbH", but it is an independent, Latvia-registered company. It has also several subsidiaries which operate independently.
LETA
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"Moduls-Riga" has purchased 75 percent of "Velve" shares, the remaining 25 percent are held by Andris Kreislers, a co-owner of "Velve".
According to data at Latvian Construction Association, "Velve" was the 15th biggest construction company in Latvia last year in terms of construction work amounts, "Moduls-Riga" was 19th. The newspaper specifies that construction work makes up an average 50 percent of "Moduls-Riga's" annual turnover. Retail of construction materials accounts for the other 50 percent of the company's turnover.
"Dienas Bizness" points out that both companies have been cooperating in implementation of various projects for several years, besides, they established company "Velve, Moduls-Riga" already in 2001 for construction of four sports arenas.
According to "Moduls-Riga" deputy director general Maris Martinsons, both companies' names will not be changed as a result of the merger. Both are recognized on the market as reputable companies, therefore changing companies' names would not be useful.
There are also no plans about uniting the financial resources of both companies, however, both will have a consolidated balance later, Martinsons admitted.
Andris Kreislers explains the merger by the situation on the construction market within the common European Union (EU) market and outside the EU.
According to Martinsons and Kreislers, they want to make "Velve" and "Moduls-Riga" the leading construction company in Latvia.
"Velve" and "Moduls-Riga" will continue taking part in construction tenders, but much attention will be paid to several real estate investment projects in the near future, which both companies will implement jointly.
Both companies have recently purchased a number of land plots to launch operations on the real estate market. Their construction program for the coming two-three years is worth about LVL 100 million, Martinsons said.
The newspaper reminds that "Moduls-Riga" is one of the eight units of the German concern "Modulex GmbH", but it is an independent, Latvia-registered company. It has also several subsidiaries which operate independently.
LETA
Copyright © LETA
