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Wednesday 26.07.2017 | Name days: Ance, Anna, Annija
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Largest Nordic cooperatives express interest for Latvijas piens

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUDanish-Swedish Arla Foods concern could be a potential owner of Jelgava’s Latvijas piens. This company was mentioned during talks regarding the sale of 55.36% of shares in Latvijas piens, according to unofficial information from LETA.

Arla Foods owns nearly 80% of the Danish dairy market, approximately 15% of the Finnish dairy market and around 60% of the Swedish dairy market. Arla Foods has procured milk processing companies in Finland, Netherlands and the UK. This allowed it to become a leader in dairy markets of these countries.

At the same time, it is also possible that Latvijas piens could be acquired by Finland’s Valio cooperative, which unites nearly 10,000 farmers and which owns nearly 20 dairy product plants in Finland and 2 in Estonia. One of Valio’s goals is becoming a leading brand not only in Finland, but also Sweden, Russia and Baltic States.

Agriculture Minister Janis Duklavs mentioned after a government meeting that one of largest European cooperatives could become the holder of Latvijas piens controlling package of shares.

Looking at Latvijas piens’ chances, the minister noted that there are currently three potential buyers with resources to afford the company’s acquisition.

The minister noted that Latvijas piens will not be provided with new requirements after grace period. «The government made such a decision in accordance with the plan. No new requirements will be set up. The government cannot get involved in the capital shares procurement process. Everything will be decided in accordance with wishes of holders of capital shares. Agriculture Ministry will definitely not buy anything,» – said Duklavs.

As previously reported, during a closed government meeting it was decided to postpone the repayment of the government’s guaranteed loan, the contract for which was signed between Latvijas piens and SEB bank in 2011, by half a year. The current amount of the unpaid debt is EUR 5,027,473.

Last week, Latvijas piens sent a letter to the State Treasury with a request to be provided with a grace period of six months in accordance with Cabinet of Ministers requirements that govern the order of supervision over guarantees provided on behalf of the state.

Latvijas piens owes Trikāta KS EUR 3,036,600. With that, the cooperative has decided to sell 55.36% of its shares. According to unofficial information from LETA, potential buyers may come from Estonia, Lithuania or Ukraine.

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