Notification on material event
Invalda INVL has received 9.4 million euros for a 37% shareholding in LP Group
Vilnius, Lithuania, 2017-12-15 08:49 CET --
Invalda INVL, an investment and asset management company, acting jointly with other shareholders has sold Litagros Prekyba – one of the Baltic States’ largest agricultural trading companies, which has grain elevator network – to Achema Group.
Cedus Invest, a company controlled by Invalda INVL, received EUR 9.4 million for 36.9% of the shares in LP Group that controls Litagros Prekyba together with its Latvian subsidiary and Joniškio Elevatorius. The transaction was completed on 15 December 2017.
Invalda INVL accounts assets at fair values; from the date of acquisition of the investment until 30 September 2017, the total investment in Litagra’s shares increased to EUR 16.81 million. Sold business was valued in the financial statements at EUR 7.8 million, therefore, the transaction will have a positive impact of about EUR 1.6 million on Invalda INVL Group‘s profit for the fourth quarter.
“The business of trading in products for agriculture (pesticides and fertilisers) as well as the grain trading business including infrastructure management are becoming globalised. Developing and competing successfully in this sector is impossible without scope. Out of two options – further market consolidation or selling our business – we chose the latter,” says Darius Šulnis, President of Invalda INVL.
Upon completion of the transaction, Invalda INVL, Gintaras Kateiva, fund Amber Trust II and other shareholders have retained the company Litagra that controls Litagros Žemės Ūkio Centras and Joniškio Grūdai. Companies of Litagra Group cultivate approx. 9,000 ha of land, have 2,000 dairy cows and a feed production facility in Joniškis. Litagra‘s equity currently amounts to EUR 36 million.
”Thanks to climatic conditions, experience gained, and available specialists in agriculture, Lithuania is a suitable place for developing primary agricultural production. Litagra intends to continue focussing on these activities by making further investments in dairy farming (nearly 5 million euros have been invested in it this year), crop and feed production and other areas that enable us to successfully compete in the global food production chain,’ says Darius Šulnis.
For the purposes of the transaction, 100% of LP Group’s shares were valued at EUR 25.56 million. An elevator network with the total capacity of over 200,000 tonnes accounts for the larger part of LP Group‘s non-current assets. Consolidate income of Litagra Prekyba for the 2016-2017 fiscal year, which ended on 30 June 2017, amounted to EUR 146.3 million.
Litagra’s income from the agricultural and feed production business totalled EUR 29.3 million.
The person authorised to provide additional information:
President of Invalda INVL