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Thursday, 25.04.2024, 02:14
Estonian Arco Vara's Latvian subsidiary's management buys out company
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Arco Real Estate
AS, a subsidiary of Arco Vara
AS, on Monday sold its 70% stake in SIA Arco
Real Estate to the latter's current shareholder and CEO Aigars Smits. After the acquisition is
complete, Smits will become the major and controlling shareholder of the
company, Arco Vara told the stock
exchange.
"In the past five years, SIA Arco Real Estate generated on average 5% of the group's revenue,
but no profit for the group's shareholders. While we recognized the complicated
situation on the Latvian real estate market after the crisis and today, the
parent company's views on conducting brokerage and valuation business did not
match the views of our Latvian management and 30% of shareholders," CEO of
Arco Vara, Tarmo Sild, said in a press release.
"Therefore, we agreed on a logical and mutually
respectful solution whereby the management bought from the group the existing
organization and office. Arco Vara Group
will continue doing real estate business in Latvia under its brand name Arco Real Estate and is open to new
ventures, while we wish the best to our former partners and new
competitors," Sild added.
SIA Arco Real Estate
will continue its usual operations under a new brand. No changes will be made
in the management or structure of the company. All contracts entered into with
third persons will stay in force.
In accordance with the contract, SIA Arco Real Estate will change the brand
in 180 days since the signing of the contract.
«The Baltic Course» Is Sold and Stays in Business!
