HEX signs agreement about buying Riga Stock Exchange [28 Jun 2002]

Fifteen shareholders of Riga Stock Exchange (RSE) accepted the proposal by HEX Group, the owner of Helsinki Stock Exchange, and on 28 June 2002 signed the sales agreement under which HEX Group will become the owner of 92.98% in RSE, reported RSE.

As a result of this transaction, when concluded, HEX Group will become the majority owner of the RSE Group, consisting of the stock exchange and the depository. The structure of the RSE Group will be similar to that in place already in Finland and Estonia and will form a part of HEX's Baltic Operations.

Those five shareholders of RSE, which are also shareholders of the Latvian Central Depository of Securities (LCDS), have also signed the share purchase agreement to sell their shares in LCDS to RSE. RSE has received the required regulatory approval from the Latvian Financial and Capital Market Commission.

RSE will be holding 81.08% of the shares of LCD. The remaining 18.92% are held by the Latvian Privatisation Agency (LPA) which has announced its intention to sell these shares during this year.

HEX and RSE this March announced the beginning of strategic co-operation between HEX, RSE and LCDS. At the time HEX offered to buy from existing RSE shareholders over 75% in the Latvian bourse. This offer was made on condition that RSE should fully own the LCDS.

Earlier RSE said the aim of this co-operation is to create a well-functioning Latvian securities market infrastructure and increase the visibility of Latvian companies and the market liquidity.

"Latvian issuers, investors and professional market participants will all benefit from our co-operation with HEX. Also, RSE and LCDS together will form a strong entity and our pooled strength and resources will allow us to operate even more efficiently," RSE president Guntars Kokorevics said on some earlier occasion.

The Tallinn Stock Exchange transferred under HEX control last year and was integrated into HEX trading system in February this year.

The RSE and LCDS shareholders are banks and brokerages.

 BNS http://bnsnews.bns.lv/

Riga Stock Exchange: http://www.rfb.lv/