Description

Latvijas Dzelzceļš is a Latvian state-owned company operating a railway network spanning 3,177 km. In 2025, it transported 21.3 million passengers and 9.5 million tonnes of freight. The Group’s consolidated revenue reached EUR 201 million in 2025.

The Group comprises several subsidiaries, including LDz Cargo, which provides freight transportation and related commercial services, as well as rolling stock repair and maintenance; LDz Apsardze, which delivers physical and technical security services; and LatRailNet, responsible for infrastructure capacity allocation and tariff management.
 
 
 

Our Contribution

Grant Thornton Baltic provided asset valuation services as part of the Group’s restructuring process. The project included the valuation of the assets of the merging entities — LDZ Ritošā sastāva serviss and LDZ Loģistika — to facilitate their integration into LDz Cargo. The engagement involved a comprehensive analysis of the merging companies, including the valuation of assets and liabilities required for the increase of the acquiring company’s share capital.

During the project, our experts analysed the operations and asset structures of the merging entities to determine the most appropriate valuation methodology. An asset-based approach was applied, taking into account the companies’ performance and the scale of their assets. The valuation process covered a range of asset categories, including real estate, railway rolling stock, and technological equipment.
 
 
 

Results

The valuation provided a solid basis for determining the value of the contributed assets and assessing their adequacy for increasing the share capital of the acquiring company. The results were used to support the implementation of the reorganisation process, providing essential input to the restructuring of the Latvijas Dzelzceļš Group.
 
 
 

Client feedback on working with Grant Thornton
We established a strong and effective collaboration with Grant Thornton, which went beyond delivering the standard services required under the Commercial Law in the context of a share capital increase during a reorganisation. The team took a thorough and tailored approach, carefully considering the specific characteristics of the subsidiaries being valued and selecting the most appropriate valuation methodology. We particularly value the timeliness of service delivery — Grant Thornton consistently met agreed deadlines, contributing to the efficient completion of the subsidiaries’ reorganisation within a relatively short timeframe of four months following approval by the Cabinet of Ministers.
Terēze Labzova-Ceicāne Chief Financial Officer of the Latvijas Dzelzceļš Group

About our team

The project was led by Aleksandrs Vellers, Head of Valuation and Financial Advisory and Partner. The lead consultants on the project were Aleksandrs Vellers and Dita Goko, Senior Financial Consultant.
Aleksandrs Vellers
Head of valuation and financial advisory department, Partner