Financial Services, Latvia, Legislation, Transport

The probe was launched in 2012 as the Financial and Capital Market Commission suspected that an association of several entities held more than 50% of RKB voting shares. During the investigation, the commission obtained conclusive evidence that Remars-Riga owned more than 50% of RKB shares. Given that Melniks is the holder of the controlling interest in Remars-Riga, he indirectly held more than 50% of RKB voting shares, the commission informs in a statement to the media.

Shortly before the Financial and Capital Market Commission's decision, several deals were concluded with RKB shares so as to reduce the actual holding of Remars-Riga in RKB below 50%, and so the commission could not order Remars-Riga and Melniks to make mandatory share redemption offer to the other RKB shareholders.

However, taking into account that Remars-Riga and Melniks have violated the Financial Instrument Market Law, both have been ordered to pay a fine of EUR 14,200 each, which is the maximum applicable penalty in this case.

The fines must be paid within one month into the state budget.

The Financial and Capital Market Commission also indicates that those RKB shareholders who believe that they have suffered losses due to Remars-Riga and Melniks' activities may turn to court and claim that their losses be compensated by the two.

Remars-Riga and Melniks may appeal the Financial and Capital Market Commission's decision to the Administrative Regional Court.

RKB posted EUR 1.927 million in net losses and EUR 53.731 million in turnover in 2013. The company's shares are traded on "NASDAQ OMX Riga" stock exchange's Second List.