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Sunday 26.03.2017 | Name days: Eiženija, Ženija

Magonis sells capital shares worth EUR 7 for EUR 1.2 million

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RULast year, former chief of LDz Ugis Magonis sold shares in a company registered in Chelyabinsk worth EUR 7 for an incredibly high price – EUR 1.2 million, as reported by De Facto programme. At the same time, available financial results of that company are bad: the company’s turnover was only EUR 3,138 and losses were EUR 1,032,971 in 2014.

Last year, Magonis submitted his declaration. In it, it is stated that he had received income worth EUR 1.2 million from Cyprus-based Claresanto Investments. Magonis confirmed in his interview to the programme that he sold shares he owned in a Russian company.

In 2012, Magonis acquired 10% of shares in Chelyabinsk-registered Tretya Gruzoperevozochnaya Kompaniya. The nominal worth of capital shares at the time was EUR 30. Because of Russian rouble’s fluctuations, the worth of shares dropped to EUR 17 last year. Magonis sold 4% of shares to the Cyprus-registered company.

What is confusing is the way Magonis acquired EUR 1.2 million from this transaction. Nearly three years ago, Magonis said dividends would not grow quickly. «The project is young. Technology needs developing and adapting to the railway. It will be a long process – nothing in our industry transpires quickly.» Publicly available financial results are poor as well.

Turnover of more than EUR 7.5 million in 2012 had declined to EUR 3,000 in 2014. Revenue after taxes is also in the negative. Losses have been varied for the company – exceeding EUR 1 million one year ago. The company’s assets were mostly made up of debts, large loans and negative capital. If Magonis managed to sell his 4% of shares for EUR 1.2 million, it is hard to expect any expert to evaluate this company to be worth EUR 30 million.

The Cyprus-based company that bought Magonis’ shares for EUR 1.2 million became the sole owner of Kundzinsalas eastern project in 2014. This company was previously indirectly owned by Skonto būve’s owner Ivars Millers.

Kundzinsalas eastern project is one of the companies that have been planning the development of a new terminal on Kundzinsala for a long time. LDz has constructed a railway line that leads to the planned terminals. Magonis was proud of that, saying that ‘it is necessary to increase the railway’s capacity, considering plans to develop the construction of new terminals’.

Claresanto Investments has officially become partners of Magonis’ private deal. However, when asked if he knows that Claresanto Investments is the owner of Kundzinsalas eastern project, Magonis said: «It cannot be the owner. There is no conflict of interests. I don’t believe that company is an owner there.»

Magonis’ time in LDz has officially come to an end. He was dismissed from his post shortly after the arrest. Nevertheless, Magonis remained the CEO of LDz for a long time. «Following Ugis Magonis’ initiative, an agreement has been reached in regards to the conclusion of work relations. It happened in December 2015. We no longer have any employment relationship and other contractual relations with Ugis Magonis,» – said LDz board member Edvins Berzins.


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