Major shareholder announcements
Information received from Euromin Holdings (Cyprus) Limited regarding the mandatory offer
JSC "Ventspils nafta" has been informed by Euromin Holdings (Cyprus) Limited ("Euromin") that the mandatory offer, set out in the Prospectus published on 15 October 2015, does not correctly value of the assets owned by JSC "Ventspils nafta".
JSC "Ventspils nafta" has been informed by Euromin that it believes the valuation of JSC “Ventspils nafta” reached by the Financial and Capital Market Commission ("FCMC") in assessing its mandatory offer is incorrect and contrary to internationally recognised accounting standards (IFRS) and EU Directive 2004/25/EC.
Euromin is obliged to make the mandatory offer, but cannot do so other than on the basis of a share price approved by FCMC, based on its calculation. Euromin has informed JSC "Ventspils nafta" that this repeated and conditional offer has therefore been made under pressure, against the prospect that Euromin’s legitimate shareholder rights would otherwise be suspended.
JSC "Ventspils nafta" has been informed by Euromin that consequently they will be referring this decision to the Latvian administrative courts (and, if required, the European Court of Justice) for review.
About JSC “Ventspils nafta”
JSC “Ventspils nafta” is one of the largest groups of companies in Latvia and works in the petroleum product transport, transshipment, storage and shipping sector. JSC “Ventspils” nafta is the Group’s parent company, which manages investments in subsidiary companies, by promoting the Group’s joint values and growth in value of each individual company.
JSC “Ventspils nafta” owns 51% in “Ventspils nafta terminals” Ltd, which is the largest crude oil and petroleum product terminal in the Baltics; 66% in “LatRosTrans” Ltd, which is a Latvian-Russian joint venture in the Baltics; 49.94% in JSC “Latvijas kugnieciba”, which is among the largest ship owners in the world in the medium-sized and handy tankers category.
Shares of JSC “Ventspils nafta” (NASDAQ RIGA: VNF1R) are quoted in the Baltic Main List of the stock exchange NASDAQ Riga since October 20, 1998.
Elīna Dobulāne, Communications Consultant
JSC “Ventspils nafta”