The acting mayor of Riga, Vice Mayor Edward Ratnieks (National Alliance), on Friday suspended the promotion of the draft decision on the sale of the municipality-owned LLC "Rīgas namu pārvaldnieks," reported LETA political advisor Inese Ozolina.
Ratnieks urges not to rush into making such an important decision for the residents of Riga and has instructed to continue a thorough assessment of other possible scenarios.
"This issue has not been discussed enough to be advanced further. At the moment, the proposal to list 51% of the company's shares on the stock exchange is just one of the possible scenarios initiated by RNP with the involvement of invited experts," Ratnieks explained.
In his opinion, it is necessary to qualitatively evaluate all possible options so that the decision aligns with the interests of the municipality and the residents of Riga.
"Right now, it seems that the initiative is being promoted in the interests of the company itself," noted Ratnieks.
As previously reported, the Riga City Council has prepared a draft decision on the sale of RNP, which is owned by the municipality.
To facilitate the sale of shares in the capital company through a public offering of securities, it is planned to reorganize RNP by transforming it into a joint-stock company.
According to the draft, it is initially proposed to sell a controlling stake in RNP by offering 51% of the shares publicly and including them in the regulated securities market of the Baltic states, starting trading in the official stock exchange list.
After the sale of the controlling stake, it is also planned to sell the remaining equity.
To ensure broad participation from investors and the public, it is planned to offer shares to private investors and individual market participants, allowing them to acquire up to 15% of the shares of the capital company.
It is expected that the participation of the Riga municipality in RNP will cease, including decisive influence, no later than the end of 2027, and completely by the end of 2028.
The real estate management company RNP is currently fully owned by the Riga City Council. In 2024, its turnover amounted to 80.569 million euros, which is 8.55% more than in 2023, and the profit was nine million euros. The company employs about 2000 people and services approximately 3500 buildings.
