Private equity fund established by Aizkraukles Banka purchased Grindeks shares

October 29, 2010, 16:38 / Investments

AB.LV Private Equity Fund 2010 purchased 1 090 844 shares of Grindeks public issue from Russian company Pharmstandard. The purchased shares ensure voting rights equal to 11.38% of the share capital, and the fund is going to use those rights directly and independently.

Purchase of the block of shares enables the fund to participate in Grindeks development, the company being the leading pharmaceutical enterprise in Latvia. In opinion of the fund’s management, the company’s attractive product portfolio, providing grounds for further development, and well-organized sales both in local and foreign markets, as well as management’s experience will ensure increase of the invested capital in future.

Taking into account the company’s growth potential, in future the fund will consider the opportunity to increase the number of Grindeks shares held by the fund.

Currently, Latvian economy lacks investment capital and availability of credit resources is still low, hindering companies’ growth. In such situation, it is especially important to support profit-making companies that produce goods exportable abroad, thus helping economy to overcome the crisis and regain sustainable growth.

AS Aizkraukles Banka established an investment fund – limited partnership AB.LV Private Equity Fund 2010 for making private equity investments. The fund’s target size is set to EUR 15 million, where Aizkraukles Banka will invest up to EUR 10 million, whereas the rest of EUR 5 million will be invested by the bank’s Private Banking customers. The fund is managed by SIA AB.LV Private Equity Management.

According to the fund’s investment policy, investments will be made in capital of companies that have growth potential, the fund consequently becoming a co-owner of the company, promoting its faster development and using wide network of Aizkraukles Banka representative offices and agents to facilitate operations in CIS markets, if necessary.

Ilmars Jargans
Head of Public Relations Department
+ 371 6700 2296