Estonia, Investments, Latvia, Real Estate, Tourism

AS Pro Kapital Grupp companies on July 25, 2017 concluded contracts for the sale of the hotels PK Ilmarine in Tallinn and PK Riga in Riga. The transaction concerning the Estonian segment was completed upon signing of the contract, whereas the transaction concerning the Latvian segment involved the conclusion of contracts for the sale of 100% of the shares of SIA Hotel Management Services, operator of PK Riga, and 100% of the shares of SIA Investhotel, owner of the real estate of PK Riga. Completion of the transaction was dependent on the fulfilment of conditions by the buyer.

Closing of the transaction concerning the Latvian segment occurred on Aug. 22, meaning that 100% of the shares of SIA Hotel Management Services was transferred to BBH Riga Hotel SIA and 100% of the shares of SIA Investhotel was transferred to Sisne Invest Riga SIA, Pro Kapital told the stock exchange.

The base price of Latvian transaction was 6.1 million euros and the final price 7.2 million euros. The latter was made up of the price of the operator company and the price of company owning the real-estate. The base price included the value of the fixed assets of the companies agreed with the buyer. Upon closing, the value of assets of the companies, excluding fixed assets, was added to the base price and value of liabilities of the companies deducted from it.