Airport, Energy, EU – Baltic States, Investments, Latvia, Transport

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Ventbukers board member Edgars Cinins informed LETA that it had been agreed to discuss different models for cooperation and analyze the company’s operating results before returning to the negotiations about possible investment in airBaltic development. No specific amounts of potential financial contribution by Ventbunkers were mentioned on Thursday.

The shareholders of Ventbunkers did not decide to make the offer overnight, he said, explaining that the company did not want the offer to create unnecessary fuss but the Latvian government had prompted it to reveal its plans.

"Considering the current political mess, we decided to put forth our proposal and to provide a friendly shoulder to lean on by offering our financial resources to increase the development opportunities of the Latvian national airline airBaltic,” the board member of Ventbunkers said.

Ventbukers realizes the potential of the aviation industry but won’t be entering this sector at any cost, Cinins said. "We are prepared to consider different options for cooperation, including investments in airBaltic in parallel with the planned contribution by the German investor, as long as it helps development of airBaltic,” he said.

"I am glad that airBaltic had listened to the offer made by Ventbunkers. We offer an alternative to give airBaltic a chance to choose the best investment offer,” Cinins said.

Earlier this week Ventbunkers invited airBaltic CEO Martin Gauss, the Supervisory Board of airBaltic and the Transport Ministry to discuss the company's possible investment in development of the national airline.

Although the process to bring to airBaltic a German financial investor, Ralf Dieter Montag-Girmes, has already begun, Ventbunkers is prepared to provide the required investment to the airline. Ventbunkers representatives would not say whether their proposed contribution would be equal to EUR 52 million offered by the German businessman. They said only that the investment proposed by Ventbunkers would be sufficient for airBaltic to proceed with renewal of its fleet.

Latvian Transport Ministry's State Secretary Kaspars Ozolins told LETA earlier that the investment offer from Ventbunkers had been received late on Monday and was being reviewed to see what exactly the company was proposing.

On November 3 the government approved an investor for the national airline airBaltic that had been suggested by the Prudentia consulting company – German businessman Ralf Dieter Montag-Girmes. He will invest EUR 52 million into the airline, and in turn get a 20 percent stake in airBaltic, whereas the state will have to invest EUR 80 million in the airline. Increasing the share capital of airBaltic is necessary so it could pursue its business plan and modernize its fleet.

The Latvian parliament on December 3 approved the EUR 80 million state loan to airBaltic and its subsequent capitalization.

According to Firmas.lv, in 2014 Ventbunkers reported a turnover of EUR 54 million, down EUR 15 million from 2013, and its profit decreased EUR 2.5 million to EUR 16.9 million.

Ventbunkers is based in Latvia's north-western port of Ventspils. Last year it reloaded 2.4 million tons of oil products.