The last, 102nd question at this week's Riga City Council meeting was about the privatization of Rīgas namu pārvaldnieks. As a result, this process was officially started.
How much, and most importantly, for how much will the municipal golden goose be sold? After all, over the past 4 years, RNP has paid the municipality dividends amounting to 14.3 million euros. We must not undersell it.
As the most likely option, the report from the legal consultant Sorainen, obtained by bb.lv, mentions "the RNP stock quotation on the stock exchange (IPO), with the sale of 51% of shares and the alienation of the remaining shares within 3 years."
"The approximate total profit of the Riga City Council from the sale of the housing management (dividends and income from sales over 3 years) is estimated at 87.4 million euros," the firm Sorainen assessed the situation in the material circulated among the municipal deputies.
At least 7 scenarios for privatization are likely. The first path – reorganization of RNP into a joint-stock company and stock quotation on the stock exchange – provides for two possible forks: the Riga City Council loses its stake completely or gradually.
When selling parts of RNP to private investors, there are already three options – the council loses its stake completely, or retains a controlling stake with a partial sale, or a minority stake.
Finally, when selling RNP in parts to multiple buyers, the enterprise itself can initially be reorganized and divided for partial sale – either these parts will be sold and liquidated.
The division scenario is considered the least profitable, as it may yield around 55 million euros, while the maximum stock quotation on the stock exchange could bring even 106 million euros.
In any case, last Thursday, the Riga City Council only launched an exciting series with many seasons…
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