AS Pro Kapital Grupp informed with 26.07.2017 release that group companies have on 25.07.2017 concluded the contracts for the sale of group hotels PK Ilmarine and PK Riga (hereinafter also referred as Transaction). The object of the Transaction is the sale of both operating activities and real-estate of hotels. Transaction concerning Estonian segment was completed upon signing of the contract. Transaction concerning Latvian segment involved the conclusion of sale contract for sale of 100% shares of SIA Hotel Management Services (operator of PK Riga hotel) and sale of 100% shares of SIA Investhotel (owner or real-estate of PK Riga hotel). Completion of the Transaction was dependent on conditions to be fulfilled by the buyer, buyer had until 30.09.2017 to complete the conditions.
We inform that closing in regards to Transaction concerning Latvian segment occurred on 22.08.2017, that means 100% of shares of SIA Hotel Management Services (operator of PK Riga hotel) was transferred to BBH Riga Hotel SIA and 100% of shares of SIA Investhotel (owner or real-estate of PK Riga hotel) was transferred to Sisne Invest Riga SIA.
Base price of Latvian transaction was 6 079 036 EUR. Final price of Latvian transaction was 7 235 796 EUR. Final price of Latvian transaction included the price of the operator company and price of company owning the real-estate. Base price included the value of the fixed assets of companies, agreed with the buyer. As of closing the value of assets (excluding fixed assets) of the companies were added to the base price and value of liabilities of the companies were deducted.
The influence of the Transaction on the group and financial of the divested companies are reflected in 26.07.2017 release.
As of closing the Transactions all contracts between issuer and disposed companies are terminated. Issuer has conclude with the buyers the fix term license agreement for use of PK Hotels, PK Ilmarine hotel and PK Riga hotel trademarks.
The Management Board Members of Hotel Management Services SIA, Paolo Michelozzi, Olga Rudzika and Ilona Ahramoviča resigned as board members after completion of the closing.
The Management Board Members of Investhotel SIA, Paolo Michelozzi, Allan Remmelkoor and Ilona Ahramoviča resigned as board members after completion of the closing.
As the result of closing the Latvian transaction Pro Kapital has exited from Riga hotel market.
Allan Remmelkoor
Member of the Management Board
Tel.: +372 6144 920
Email: prokapital@prokapital.ee