Notification on material event
Concerning the opinion of the Audit Committee, dated 7 of February 2019
Lithuanian electricity transmission operator LITGRID AB (business ID 302564383, registered office address A. Juozapavičiaus 13, LT-09311, Vilnius), informs that the opinion of The Audit Committee of the Holding company UAB EPSO-G was received on the following matters: 1) opinion relating to the mutual borrowing transactions between EPSO-G, UAB and TETAS, UAB using the Cashpool; 2) relating to the transaction of transfer of EPSO-G, UAB tax loss to LITGRID, AB for the year 2018; 3) opinion relating to the transaction of transfer of Litgrid Power Link Service, UAB tax loss for the year 2018 to LITGRID, AB.
An opinion on the mutual borrowing transactions among EPSO-G, UAB and TETAS, UAB using the Cash pool:
(i) The conclusion of TETAS and EPSO-G transactions complies with market conditions (the applied interest rate is consistent with the arm’s length principle, and the reservation fee complies with market conditions under which UAB TETAS could enter into analogous transactions with credit institutions);
(ii) TETAS and EPSO-G transactions are fair and reasonable with respect to the shareholders of LITGRID AB who are not parties to TETAS and EPSO-G transactions, because the conclusion of TETAS and EPSO-G transactions will have a positive impact on the dividends received by LITGRID AB, and LITGRID AB will not undertake any additional new obligations with the conclusion of a loan subordination agreement.
Opinions relating to the transaction of transfers of EPSO-G and Litgrid Power Link Service, UAB tax loss for the Year 2018 to LITGRID, AB:
(i) The contracts on the transfer of tax losses between Litgrid and EPSO-G / Litgrid Power Link Service, UAB are fair with respect to all shareholders of LITGRID AB, the transfer of tax losses is carried out in accordance with the procedure prescribed in the LCIT, and LITGRID AB will incur no losses due to the contracts on the transfer of tax losses between Litgrid and EPSO-G / Litgrid Power Link Service, UAB.
The transactions mentioned above will be concluded by the Board of LITGRID, AB on February 26, 2019.
The individual authorised by LITGRID AB to provide additional information:
Head of Communication Division
phone. +370 613 19977