bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Sunday 24.06.2018 | Name days: Jānis
LatviaLatvia

Ventbunkers and airBaltic begin investment attraction talks

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUIn response to Ventbunkers’ earlier announcement regarding the readiness to invest in airBaltic, the first talks between the two companies were held on Thursday, 17 December.

During talks, both sides agreed to consider different cooperation models and come back to talks later. No specific investment amounts were discussed during the first talk with airBaltic, as reported by Ventbunkers.

«I am happy that Ventbunkers’ offer was heard by airBaltic. We have offered them an alternative option to help airBaltic consider and pick the most beneficial investor offer,» – comments Ventbunkers board member Edgars Ciniņš.

Explaining Ventbunkers’ interest in airBaltic, Ciniņš said that this decision was previously discussed in detail by the company’s shareholders. It was not made spontaneously. In order to avoid creating a potential scandal regarding Ventbunkers’ possible investments in airBaltic, the management decided not to announce it too early. However, the hand was forced by the collapse of the ruling government in Latvia.

«Since the country is currently ruled by a political mess, we have decided to voice our offer and extend a helping hand and financial resources to assist airBaltic with its development. Aviation is highly valued around the world, and we view it as a business perspective. Nevertheless, it is not the main reason why we have decided to make this offer. We do not want to get involved in this industry at any cost. We are prepared to consider different cooperation options, including investment into airBaltic in parallel to the contribution of the German investor as long as our efforts help airBaltic develop and grow in the future,» – he explained.

Ventbunkers’ audited results for 2014 show that even in spite of the tense situation in Latvia’s transit industry, the company has managed to maintain stable positions on the market. The company’s successes are also reflected in financial indexes. In 2014, Ventbunkers’ company turnover reached EUR 54 million. The company’s clean revenue was nearly EUR 17 million, which is one of the largest in Ventbunkers’ history.

That year, Ventbunkers handled a total of 2.4 million tons of oil products. Ventbunkers also paid more than EUR 3.4 million in state, municipal and social taxes. Last year, Ventbunkers was also recognized as the largest taxpayers in Ventspils.

The company also plans to finish 2015 with good financial results. It is also planned to contribute a lot to state and municipal budgets in the form of paid taxes, notes Ventbunkers.

BNN had previously reported that Ventbunkers has expressed readiness to invest in the country’s national airBaltic airline. Ventbunkers has asked Air Baltic Corporation’s CEO Martin Gauss and Transport Ministry to discuss this investment option.

«Ventbukers, as one of the largest companies in Latvia with stable financial footing, is interested in discussing investment opportunities with airBaltic. Ventbunkers’ economic indexes for the past year demonstrate successful results. We are now prepared to go further. I believe it is important to support local companies to give them the opportunity to grow, develop and create new jobs in Latvia. With that and in spite of the already launched investor attraction process, we as prepared to provide the airline with all the necessary support and discuss investment opportunities for airBaltic’s development,» – comments Eva Cinina, Chairperson of the Board of Ventbunkers.

As it is known, the Latvian government has decided to exclude the procurement of Russian Sukhoi aircraft from airBaltic’s business plan. The government has also approved the decision to appoint Montag Girmes as the airline’s investor.

Saeima has also agreed to allocate a loan of EUR 80 million to airBaltic.

At the same time the Saeima has decided to prohibit airBaltic and its subsidiaries from procuring, leasing or using products made by military industrial complexes facing international sanctions.

It has also been decided to approve German businessman Frank Dieter Montag Girmes as airBaltic’s investor. He has agreed to invest EUR 52 million in the airline as long as the Latvian state invests EUR 80 million. The airline’s combined capital of EUR 132 million would contribute to modernization of the fleet and development of the business plan.

Ref: 102.109.109.3373


Leave a reply

SRS uncovers numerous violations more than half of inspected companies

State Revenue Service’s Tax Control Office performed a total of 305 thematic inspections of employers in Latvia in Q1 2018. Authorities recorded violations in 171 inspections, according to information from SRS.

Third level pension plan deposit volumes reach new record value

Residents’ interest for pension savings remains high. The volume of deposits made to private pension funds in the first three months of 2018 has reached a new historic peak: a total of EUR 16.5 million has been paid to 3rd level pension accounts, which is 11.6% more when compared to the same period of 2017, as reported by Finance and Capital Market Commission.

Petrol station network in Latvia caught performing fraudulent activities with diesel fuel

State Revenue Service’s Tax and Customs Police have uncovered and put an end to a fraudulent scheme with diesel fuel performed by some network of petrol stations in Latvia, as confirmed by the service.

Kaimiņš: I believe CPCB is performing a political order

In the evening of Thursday, 21 June, Corruption Prevention and Combating Bureau released three people previously detained as part of a criminal process regarding possible illegal funding of KPV LV party – Saeima deputy Artuss Kaimiņš, his colleague Atis Zakatistovs, and businessman Viesturs Tamužs.

Latvia’s parliament conceptually supports new sanction regulations

On Thursday, 21 June, Saeima supported in the final reading amendments to the Law on International Sanctions and National Sanctions of the Republic of Latvia that are meant to improve sanction regime regulations to ensure efficient application of national and international sanctions, as reported by Saeima press-service.

Storm in Tallinn floods streets, cuts Croatia-Argentina match short on TV

A rain storm has hit northern Estonia on Thursday, flooding some streets in the capital Tallinn, damaged buildings and badly affected the broadcast of an interesting World Cup game.

American banks tested for financial stress show positive results

The U.S. has performed banking stress tests and found that the 35 largest banks operating in the country have enough funds on hand to sail safely through a severe financial crisis.

Saeima fires judge for coming to work in a drunken state

On Thursday, 21 June, Latvia’s parliament supported the proposal to dismiss Rezekne Court judge Arvis Garais from his post. 71 deputies voted in favour, no one abstained and no one voted against.

UK to have three requirements to EU citizens willing to remain in UK

For citizens of the European Union willing to continue living in the UK after the country leaves the bloc, they will have to submit applications and answer three key questions over the internet, according to the country's interior minister.

Weather in Latvia to be rainy and cool during Ligo; next week’s weather to be dry and hot

Weather at the end of the week in Latvia will be dictated by a cyclone. Because of that, there will be instances of rain on Ligo. Weather is expected to improve next week, however, according to Latvia’s State Environment, Geology and Meteorology Centre.

Lithuania’s blood plasma corruption scandal extends to Latvia

The former head of Lithuania‘s National Blood Centre, suspected of corruption and involvement in unlicenced activity, received more bad news this week from Latvia, where investigators of the Lithuanian Special Investigation Service had questioned the Latvian Health minister, Anda Čakša.

Administrative burden to be reduced for foreign students and researchers

The administrative burden will be reduced for foreign students and researchers, as well as all education and research institutions hosting them. This is provided by the amendments to the Immigration Law approved by the Saeima in the third reading on Thursday, 21 June.

Latvian Economy Minister endures no-confidence vote

Saeima declined opposition deputies’ request for dismissal of Economy Minister Arvils Ašeradens.

Swedbank economist becomes new member of Bank of Latvia Council

On Thursday, 21 June, Latvia’s Saeima approved Mārtiņš Kazāks in his new post as member of Bank of Latvia Council, as confirmed by Saeima’s press-service.

Pope Francis’ visit to Latvia will be a national holiday

Latvia’s parliament has approved in the final reading a law that makes 24 September – the day Pope Francis plans to visit Latvia – a national holiday.

ICT specialist numbers in Latvia are below Europe’s average level

In Latvia, information and communication technology specialists form only 2.2% of all employed people in the country, which is considerably below the average level in the European Union – 3.7%. Romania and Greece are the only two EU member states in which the number of ICT specialists is below Latvia’s, according to European Commission’s DESI index.

Hungary adopts prison sentence for helping migrants

Hungarian National Assembly has passed a set of laws criminalising with prison terms some help provided to illegal immigrants by non-governmental organisations.

Harmony plans turning to Constitutional Court to prevent transition to Latvian language in schools

«Why should this reform stay unrealized? It is because schools are not prepared for cardinal changes coming from dozens of other reforms that have already shocked the country’s entire general education system,» says chairman of National Minority School Parents Forum and member of Harmony’s work group in Konstantīns Čekušins.

Deputies detained in KPV LV criminal case not declared suspects yet

Saeima deputy Artuss Kaimiņš and businessman Viesturs Tamužs detained in the criminal process regarding possibly illegal funding of KPV LV party have not yet been declared suspects. Both are currently in police custody. It is likely Kaimiņš will be released later today, 21 June.

Production of mines and grenades planned in Estonia

As the Estonian parliament has adopted new rules on military arms and ammunition production in the country, local defence firm Eesti Arsenal has voiced its plan to build a factory in Estonia to make military explosives.

Total tax debts in Latvia reached EUR 1.224 billion in June

At the beginning of June, total tax debts in Latvia, including topical, halted debts and extended repayment terms were equal to EUR 1.233 billion, which is 0.6% less compared to May, as reported by State Revenue Service.

Switch off internet nationwide during exams – Algerian approach

In an attempt to prevent cheating during secondary school exams, the north African nation Algeria, has turned off internet in its whole territory.

Control Service proposes kicking out shell companies as intensely as offshore companies

Shell companies in Latvia should be combated with the same intensity once shown to offshore companies, says chief of Anti-Money Laundering Service Ilze Znotiņa.

EU imposes tariffs on blue jeans, motorcycles and other U.S. export goods

The European Union will introduce retaliatory tariffs against U.S. exports on Friday, EU Trade Commissioner has stated a top official has stated in the bloc's reaction to Washington imposing steep duties on steel and aluminium earlier in June.

Latvia’s Saeima proposes improving job-combining rules for state officials

On Wednesday, 20 June, Latvian parliament’s Public Administration and Local Government Committee decided to submit for review amendments to the Law on Prevention of Conflict of Interest in Activities of Public Officials.

Newest comments