LPA chief calls Hotel "Latvija" a good example of successful privatization
Arnis Ozolnieks, director general at the Latvian Privatization Agency, considers the Riga^apostrofs;s Hotel "Latvija" (now the "Reval Hotel Latvija") a good example of successful privatization.
Arnis Ozolnieks, director general at the Latvian Privatization Agency, considers the Riga's Hotel "Latvija" (now the "Reval Hotel Latvija") a good example of successful privatization.
As Ozolnieks told reporters today, according to the hotel's privatization regulations, 224 people were to be employed but a total of 238 jobs are filled there at this time.
The new investor was required to invest LVL 15 million by 2003 but at this time investments are already over LVL 18 million.
The centrally-located high-rise hotel was handed over for privatization by government decree on February 21, 1996. Basic guidelines for privatization were confirmed on June 12, 1997.
According to the guidelines, the hotel's privatization unfolded in three phases. In the first, the hotel was transformed into a "to-be privatized state stock company" (PVAS), share capital was raised in the second phase with private funding, and sale of remaining state-owned shares took place in the third.
According to the second phase's regulations, the hotel's share capital grew from LVL 2,100,000 to LVL 3,100,000, and the joint-stock "RI-OS" was confirmed as investor.
2,097,000 state-owned shares were sold in the third phase, which made up 67.65% of the hotel's share capital, and 800,000 shares were sold to "RI-OS" for LVL 1.7 million, with 50% paid in lats and 50% with privatization vouchers.
232,064 shares were bought up by the hotel's staff and retirees, and 130,000 by management. 721,756 were snatched up in public offer for LVL 5.02 each.
200,000 shares went to the rehabilitation program at the "Latvian Savings Bank" (Latvijas krajbanka), and 11,180 unsold shares during privatization were sold to the Riga Stock Exchange on September 6, 1999 for LVL 0.21 a piece.
The total price for all shares sold: LVL 5,892,626.
Mārcis Krastiņš LETA
Copyright © LETA
As Ozolnieks told reporters today, according to the hotel's privatization regulations, 224 people were to be employed but a total of 238 jobs are filled there at this time.
The new investor was required to invest LVL 15 million by 2003 but at this time investments are already over LVL 18 million.
The centrally-located high-rise hotel was handed over for privatization by government decree on February 21, 1996. Basic guidelines for privatization were confirmed on June 12, 1997.
According to the guidelines, the hotel's privatization unfolded in three phases. In the first, the hotel was transformed into a "to-be privatized state stock company" (PVAS), share capital was raised in the second phase with private funding, and sale of remaining state-owned shares took place in the third.
According to the second phase's regulations, the hotel's share capital grew from LVL 2,100,000 to LVL 3,100,000, and the joint-stock "RI-OS" was confirmed as investor.
2,097,000 state-owned shares were sold in the third phase, which made up 67.65% of the hotel's share capital, and 800,000 shares were sold to "RI-OS" for LVL 1.7 million, with 50% paid in lats and 50% with privatization vouchers.
232,064 shares were bought up by the hotel's staff and retirees, and 130,000 by management. 721,756 were snatched up in public offer for LVL 5.02 each.
200,000 shares went to the rehabilitation program at the "Latvian Savings Bank" (Latvijas krajbanka), and 11,180 unsold shares during privatization were sold to the Riga Stock Exchange on September 6, 1999 for LVL 0.21 a piece.
The total price for all shares sold: LVL 5,892,626.
Mārcis Krastiņš LETA
Copyright © LETA
