In accordance with the requirements of Section 7 and 10 of Article 59.1 of Law on the Financial Instruments Market, the Board of the Joint Stock Company “Latvijas balzams” (hereinafter also “the Company”) informs that the liabilities of Limited liability company “Amber Beverage Group”, a company belonging to the same group with the Company, to Luminor bank AS, are transferable to Amber Beverage Group Holding S.à r.l. As a result of the transfer of liabilities, loan agreements will be converted and securities collateralised with Luminor Bank AS will be taken over. The contracts for the collateral provided by the Company will be also converted.
The impact of the transaction on the Company's commercial activities is evaluated positively. The essential provisions of the contracts will not exceed the amount of obligations stipulated in the previous contracts, moreover, the amount of debt that the Company provides collateral for will decrease by EUR 5'016'049 and will amount to EUR 29,696,530.
The transaction is also forecasted to have a positive impact on the shareholders of the Company, which are not considered as related parties to the transaction, as the Company will receive additional income. The Audit committee opinion on the transaction has been obtained.
AS "Latvijas balzams"
Chairman of the Board
Intars Geidāns