SIA “Rīgas meži” has announced an open tender to find a consultant to manage the process of finding an investor for and selling the “Norupe” sawmill. This is necessary to ensure the company exits the log processing business, in accordance with directives from the State Audit Office and the Competition Council, as well as decisions made by the Riga City Council and the company’s supervisory board.

Documents for participation in the procurement must be submitted via the Electronic Procurement System by 10.00 on Friday, 21 April 2023. Information about the tender and how to apply can be found here: https://ej.uz/kwqu.

Attracting a potential investor and organising the sale of the sawmill is the next stage in the company's exit from the log processing business. According to the procurement documentation, the consultant must find a buyer or investor for the sawmill within 12 months from the date the procurement contract is signed.

During the sale of the “Norupe” sawmill, “Rīgas meži” is paying particular attention to ensuring that decision-making is based on principles of good governance, legality, transparency, and sound calculations. It is also important to the company to safeguard the interests of the sawmill's employees.

Therefore, at the beginning of this year, “Rīgas meži” listened to potential applicants' proposals regarding the draft procurement documentation. This helped to foster maximum competition, assess the current market situation, and set reasonable requirements for the preparation of high-quality procurement documentation.

Meanwhile, at the end of last year, after evaluating the possible methods for selling the sawmill, their suitability for the requirements of potential investors, and the interests of SIA “Rīgas meži”, the following possible scenarios were identified as the most advantageous for the company:

• selling the sawmill business (the entirety of its assets and liabilities),
• investing the sawmill business into the share capital of a new company and subsequently selling the shares, or
• selling the sawmill's assets, to be implemented if, after a thorough investor selection and outreach process, no suitable offers are received for the sale of the sawmill business or its shares.