“The things that had to be explained on Friday afternoon were explained yesterday. The public has completely valid questions, after all, it is taxpayers’ money that has been invested there,” Rinkevičs said.
The President pointed out that it is the responsibility of the Minister of Transport, as the minister responsible for the sector, not only to discuss these decisions in the government and submit them, but also to explain them in a timely, comprehensible and justified manner.
He also emphasized that further decisions and projects that will be submitted to the government will also be the responsibility of the Minister of Transport.
At the same time, Rinkēvičs expressed that he would like the conversation about “airBaltic” to be less emotional, but more pragmatic, taking into account the positive benefits of the national airline – connectivity with European cities, tourism and business development.
“But all this has a price, and I would like to expect from the responsible ministry a clear vision of how we develop further, timely answers to reasonable questions,” said the president, while reminding that the Ministry of Transport is the holder of the state capital shares of “airBaltic”.
The president also revealed that he will meet with the Minister of Transport next week to discuss these issues.
The President expressed that there are things that need to be discussed, and there are things that the government cannot reveal yet, while reminding that no irreversible decision has been made regarding the reduction of the share capital of “airBaltic”.
The Prime Minister, on the other hand, revealed that she will evaluate Brišken’s work based on how he will manage to deal with the communication challenge. “Of course, one of the tasks of a politician is to explain decisions in a way that is understandable to the public, no matter how complex the decisions may be, also telling honestly what the problems and challenges are,” said Silina.
It has already been reported that the government agreed in the closed part on Friday, August 30, that the state should retain at least 25% plus one share in the company’s capital after the initial public offering (IPO) of “airBaltic” shares.
Briškens explained that currently there are no negotiations with the strategic investor of “airBaltic” about the sale of a controlling stake, but about obtaining a minority stake before the IPO or on the way to the IPO, as well as possibly participating in the IPO.
In preparation for the IPO, the share capital of “airBaltic” will be reduced by 571.293 million euros, as well as the existing share structure of the company will be simplified. According to the regulations of the share capital reduction, the share capital of “airBaltic” will be EUR 25.179 million after the reduction.
At the same time, the nominal value of all shares of categories A, B and C will be reduced to ten cents and EUR 571.293 million will be directed to cover the accumulated losses of previous years. No remuneration or compensation will be paid to the shareholders in connection with the reduction of the nominal value of the shares of these classes.
“airBaltic” board chairman Klāvs Vasks said at a press conference on Tuesday that “airBaltic” wants to raise around 300 million euros in the IPO process.
Vasks also noted that the amount by which the share capital of “airBaltic” will be reduced, namely EUR 571.293 million, looks large, but the amount of capital does not change the value of the company.
Vasks added that the true value of the company will be determined by the market. “After the consolidation of the share classes, the shares will be able to be quoted on the stock exchange with a higher value. If this were not done, the value of the new shares on the stock exchange could be a few cents or very little,” he said.
Transport Minister Briškens also noted that the state benefits from the taxes paid, from jobs, and also from the provided connectivity. “For the company, successfully issuing shares in the IPO process, we expect that, with the state also retaining a minority share, the company will be profitable and the state will continue to receive indirect benefits and financial benefit if the company works profitably,” said the minister.
Also, the minister acknowledged that communication is important in this matter, so more attention will be paid to it in the future.
“airBaltic” carried a total of 4.536 million passengers last year, which is 35.7% more than in 2022, and operated 44,100 flights, which is 18.3% more than a year earlier.
The audited turnover of “airBaltic” last year amounted to 664.289 million euros, which is 33.2% more than in 2022, and the company also made a profit of 33.852 million euros, in contrast to losses a year earlier.
The Latvian state owns 97.97% of “airBaltic” shares, while “Aircraft Leasing 1” owned by financial investor, Danish businessman Lars Tūsen – 2.03%.
2024-09-05 04:07:33