Arco Falls 27% on Developer’s Asset Revaluation: Tallinn Mover
Arco Vara AS (ARC1T), the only publicly traded Baltic property developer, fell 27 percent after the company lowered the valuation of some of its real-estate projects and receivables.
The shares fell as much as 60 percent to a record low in early trading, recovering more than half the loss to close at 1.26 euros in Tallinn, Estonia, where the company is based. Volume of 125,062 shares was the most since June 8.
Arco’s net assets will shrink by 19.7 million euros ($26 million) due to the revaluation of assets and liabilities in Estonia, Latvia, Lithuania and Bulgaria, the company said after trading on Jan. 11. The company reported total assets of 52 million euros at the end of September.
Arco in November named Tarmo Sild, a former attorney, as its new chief executive officer, replacing Lembit Tampere “to stabilize, restructure and refinance Arco Vara group and to restore the group’s profitability,” it said on Oct. 16.
Funds managed by New York-based Firebird Management Llc owned 8.4 percent of Arco shares as of Dec. 28, while pension funds managed by LHV Pank AS in Tallinn owned 5.7 percent, according to data compiled by Bloomberg.
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