Privatization in Lithuania: Steamship Company

Published: 7 July 2000 y., Friday
One of these days the winner of the competition on privatization of the Lithuanian steamship company (LISCO) was determined - international consortium B.B.Bredo B.V. It consists of three companies - Israeli sea organization Printer Gadot-Yam, Israeli financial company Kamor and Danish steamship company DFDS Tor Line A.S. The last in its turn unites the enterprises of many countries, including the Lithuanian one - DFDS Baltic Line. Turnover of the Danish company, and as a matter of fact - the international company, makes about 7 million tones of Cargoes per one year.

The stage of negotiations concerning the price begins. The talk is about the purchasing of 75 % of the shares; and approximately 5 % will be exposed on the National stock exchange of securities. Except for the named consortium Liberian enterprise Eurochart Brokerage Inc, Norwegian Baltic Sea ASA, Denmark-German Scanlines AG (the leader of the region on ferry transportations) and Cyprian consortium Menzi Navigation Limited have participated in the negotiations, too.

I shall remind, that this is already the third attempt to sell the steamship company. Last time - in last July Scanlines offered 140 millions Lt: in the consulting room of R.Paksas such price was considered to be miserable and the bargain was not held. At that time all the experts advised not to hasten, as the world conjuncture in the market of sea transportations was adverse and did not promise changes to the best in the nearest prospects. The share market on which shares of steamship companies have sharply fallen signals about it, too: today for face value in 10 Lt only 1,6-1,7 Lt are given. And this is so taking into account that property of shipping company by the financial analysts was estimated to be of 620 million Lt worth.

It is clear why the price is not disclosed at the stage of negotiations. It is known only that the nominal price of portfolio is approximately 400 million Lt. But this doesn’t mean anything. On idea the price should rise, as shipping company managed to improve the results essentially: 8,4 Lt million profit was received, during half-year about 86 million Lt were invested. It was already felt in the share market: the price of shares has risen a little. PricewaterhouseCoopers consults current stage of privatization.
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