Several scenarios for the sale of SIA "Rīgas namu pārvaldnieks" (RNP) have been analyzed, considering that the current real value of the enterprise is 76-80 million euros, writes Diena.
The first scenario involves splitting RNP and selling it in parts, with an estimated market value of about 55 million euros. The second scenario is the sale of RNP to a private investor, with an estimated market value of about 68 million euros. The third scenario is listing RNP on the stock exchange with an estimated market value of 80-106 million euros.
The law firm "Sorainen" was engaged as a consultant for the sale of the enterprise, and the consulting company "PwC Latvija" was involved on specific issues.
In the draft decision prepared by the Riga City Council, which was suspended by the then acting mayor and vice-mayor Edvards Ratnieks, the implementation of the third scenario was proposed - to transform RNP into a joint-stock company and initially list 51% of the shares owned by the municipality on the stock exchange. The municipality planned to cease its decisive influence in RNP by July 31, 2027, and to fully sell the enterprise through the stock exchange by the end of 2028.
Each of the scenarios for the sale of RNP has its pros and cons. According to Ginta Beleviča, head of the financial markets department at Luminor Bank, it is difficult to see the logic in the scenario of splitting the company into parts, as the range of services provided by RNP is not diversified enough to justify dividing the company into several enterprises with narrower specialization. Such a division would likely lead to duplication of administrative functions and reduced profitability.
"The advantage of selling the enterprise as a whole lies in the relatively quick process and immediate availability of funds for the Riga City Council after the deal is completed. However, such a process may raise concerns about the correct determination of the deal's price. Since the number of potential buyers willing to acquire 100% of RNP's equity may be limited, there is a likelihood that the deal could occur below market value," notes Beleviča.
