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Times of Riga - 9 October 1923

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AdmKuznetsov

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Sunday, July 11th 2004, 4:36am

Times of Riga - 9 October 1923

In business news today, the main headline is the sale Daugavpils-Riga and LatBalt railroad companies to RosPoezd, the largest operator of railroads in the Russian Federation. A LatBalt company spokesman explained "Profit margins in our business have been very thin ever since the end of the war, because both our and the Daugavpils-Riga systems have had to invest in highly expensive maintenance facilities, and have suffered from shortages of locomotives and rolling stock. But ever since the new Customs regulations at the Russian Federation border entered force, our revenues have plummeted. Neither company is really a viable concern, under present circumstances."

The sale price for Daugavpils-Riga is 14 Lat per share, over a 40% premium on the closing price last Friday. Eight months ago it was going for 38 Lat per share.

The sale price for LatBalt is 12 Lat per share, also a 40% premium on Friday's close. Eight months ago LatBalt closed at 41 Lat.

The sale of several shipping operations in Riga, Vetspils, and Leipaja to a number of Russian Federation shipping and port operation concerns.