Latvia, Machinery construction, Markets and Companies, Mergers and take-overs, Real Estate, Retail

Beseris did not disclose the price of the transaction.

He said that the decision to acquire 100% in Tineo was taken in order to simplify and streamline the company’s management.

Beseris indicated that the deal resolves administrative issues concerning the property at 20 Priedaines Street, the gifting of the land plot to the Riga local authority for building a memorial to the victims of the Maxima store collapse and providing support to those who suffered in the disaster.

Since currently Tineo is not involved in any business activity, Maxima plans to fold the company after all the legal proceedings involving the property management are closed.

In 2012 Tineo purchased the building at 20 Priedains Street from Homburg Zolitude real estate developer, having received guarantees about safety of the building, and Tineo further leased the premises to Maxima Latvija retailer.

As reported, several successive roof cave-ins in the building housing a Maxima supermarket in the Zolitude residential area in Riga occurred on November 21, 2013, killing 54 people, including three rescuers, and injuring dozens of other people.

Maxima Latvija turned over EUR 723.054 mln in 2017, up 4.2% against a year before, while the retailer’s profit grew 93.9 percent to EUR 23.224 mln.

Maxima Latvija is fully owned by Dutch-registered company Lincoln Land Erste B.V, according to Firmas.lv.