Regarding mandatory share buyout offer
On 25 May 2018, the Council of the Financial and Capital Market Commission by its resolution No 84 allowed Measurestep Enterprises Limited, a shareholder of the joint-stock company Riga Electric Machinery Factory (hereinafter – RER), to make a mandatory share buyout offer (hereinafter – Offer) and approved the buyout price of EUR 6.51 per share.
The Board of Directors of RER has reviewed the Offer and concluded that the Offer complies with the applicable statutory regulations.
The Board of Directors of RER views as positive the fact that the company that came up with the Offer plans on continuing commercial activities of RER in line with the existing practices and no significant changes are contemplated. Another positive aspect is in the fact that the Offer of Measurestep Enterprises Limited will not affect the RER employment policy, i.e., all labor relationships will continue as stipulated in employment contracts. Also, Measurestep Enterprises Limited does not plan to move RER from the location where it carries out its commercial activities at present or reorganize and/or restructure the facilities.
Taking into consideration that according to its business plan RER will go through a phase of rapid development in upcoming years, the Board of Directors assumes that the net worth of RER in the future will certainly grow.