Latvian „Passenger Train” Becomes State-owned Company

08.10.2008 (16:30)

On October 2, the Ministry of Transport of Latvia, on behalf of the state of Latvia, signed a deal with the state-owned joint-stock Latvijas dzelzcels (Latvian Railroad, LDz), which stipulates that the company Pasazieru vilciens (Passenger Train) becomes a state-owned enterprise, as BC was informed by the LDz public relations head Biruta Sakse.

At the end of August, the government gave its permission to the Transport Ministry to purchase Passenger Train shares and sign a purchase contract with LDz.

Using its LDz shareholder's rights, the government decided that LDz has to pay the state in dividends a 65.09% share of the profit it earned in 2007 or LVL 13.29 million.

Ministry of Transport was consequently made a shareholder of the Passenger Train.

The purchasing of Passenger Train shares will be covered by the money received from LDz through part of the LDz profit that it has to pay to the state in dividends.

Passenger Train was one of the first subsidiaries of the LDz concern, The Baltic Course reports.



Currently the LDz concern consists of the holding company LDz and five subsidiaries.
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