For investors (8)

What is the Initial Shareholders Registry?

The Initial Shareholders Registry is a list of those individuals who, as a result of privatization, obtained rights to specific shares (in this case to the shares of Latvijas Gāze). The storage of shares in this registry is free of charge. However, while shares are in this registry, the individuals may not act as they wish with their shares. In order to receive dividends, sell shares or give them as a gift, or perform other actions, it is necessary to open both a securities account (and deposit shares in this account) and a cash account (in order to transfer dividends) in any commercial bank or brokerage firm. The only operation that an individual who has shares in the Initial Shareholders Registry may perform is to participate in a shareholders meeting.

What is the Notice about Paid Shares?

The Notice about Paid Shares is a confirmation that an individual has obtained shares in a public tender, with certificates, and that such shares are located in the Initial Shareholders Registry. This notice was issued to shareholders in that department of Latvijas Krājbanka or Latvijas Hipotēku un zemes banka in which the shares were obtained with certificates. The Notice about Paid Shares is an informative document; it is not a confirmation of property rights. Confirmation of property rights you must request in NASDAQ Riga (if shares are still in the Initial Shareholders Registry) or in the bank, where your shares are held. In order to receive dividends, sell shares or give them as a gift, or perform other actions, it is necessary to open both a securities account (and deposit shares in this account) and a cash account (in order to transfer dividends) in a commercial bank or brokerage firm.

How do I open a securities account?

A securities account may be opened at banks and brokers unions that are members of the Latvian Central Depository. In order to receive dividends or buy or sell stocks, a cash account must be opened. The opening of securities and cash accounts, the transfer of shares from the Initial Shareholders Registry to a securities account, the storage of shares, and other operations shall be performed by banks and brokers unions, and these shall be fee-based services, the prices of which shall be determined by the specific bank or brokers union. Shares that have been transferred to a securities account may not be returned to the Initial Shareholders Registry.

How do I receive dividends?

In order to receive dividends, shares must first be transferred to a securities account in a commercial bank or brokerage firm. If shares already are in a securities account, dividends are automatically transferred to your opened cash account. If shares are still registered in the Initial Shareholders Registry, then dividends are amassed by Latvian Central Depository and you will be able to receive them by opening a securities account and transferring shares to it.

Before shareholders meetings, the date is determined on which the list of shareholders will be ascertained, or the “calculation date.” If a person has shares in a securities account on the calculation date, dividends are paid; if a person does not, dividends are not paid. A person who wishes to procure shares before the calculation date must take into account that securities payments take at least three days, from the moment when the shares are purchased until the moment when such shares are transferred to a securities account. For instance, if the calculation date is set for July 14, then shares must be purchased by July 10. The shareholders meeting shall determine both the dividend-calculation date and the payment date.

Who takes decisions regarding the payment of dividends?

A dividend is a stock company’s unit of pure profit that is received by a shareholder. The amount of this unit of profit, or the amount of money that is paid, is decided by a shareholders meeting. A shareholders meeting also determines the date on which dividends will be calculated and the date on which such dividends will be paid to shareholders.

How do I reregister shares in another person’s name?

In order to sell your shares, give them as a gift, or perform other operations, it is necessary to open both a securities account (and transfer shares to such account) in a commercial bank or brokerage firm and a cash account. When transferring shares from the Initial Shareholders Registry to a securities account, it is possible to immediately transfer such shares to another person’s account. An order regarding the transfer of shares from the Initial Shareholders Registry to a securities account, and regarding the selling or reregistration of shares to another person’s name, shall be given to the bank or brokers union holding the existing or desired account. nevertheless, if you are the heir of Latvijas Gāze shares, you must first contact a sworn notary to transform your inheritance shares to your securities account, in order to recognize your right to inherit shares by settling the case.

What can I do with my shares?

Financial analysts and brokers offer consultations regarding possible operations with your shares: buying, selling, prices, deadlines, etc. More information regarding operations with securities may be found on the Web site of the NASDAQ OMX Riga Stock Exchange. If you are not sure whether you own shares of the JSC Latvijas Gāze, you must contact NADAQ Riga to submit a request for relevant information.

How do I receive information about the procedures of shareholders meetings and the decisions up for review at these meetings?

Latvijas Gāze Investor Relations


NASDAQ Riga Stock Exchange / Latvian Central Depository
Tel.: +371 67 212 431
E-mail: riga@nasdaq.com
Web site: http://www.nasdaqbaltic.com

The newspaper Latvijas Vēstnesis and other Latvian newspapers