UAB Linas Agro Konsultacijos, a subsidiary AB Linas Agro Group, sold the shares of a group of companies Zemvalda Land Management Holdings that are operating in Latvia. Today, a share purchase and sale agreement was signed with INVL Sustainable Timberland and Farmland Fund II for sale of 100% shares of the companies. The total amount of the transaction will exceed EUR 13.6 million.
The companies for sale, through their subsidiaries, own almost 2,002 ha of agricultural land plots in central Lithuania: Panevežys, Kedainiai and Radviliškis districts.
"Our agricultural companies cultivate over 18,000 hectares of land, of which only 8 thousand ha was the own land, the other land is rented. Land acquisition as itself have never been our goal, land has been acquired to enable expansion of our agricultural companies. However, now the land lease market has stabilized, we see an opportunity to continue the operations by leasing land," says Andrius Pranckevicius, Deputy Managing Director of AB Linas Agro Group.
The decision to cut the area of the own land was made with the aim to achieve a greater efficiency of the assets and a higher return on investment. "We will use the received funds for the planned development and further investments," says A. Pranckevicius.
Swedbank AB Investment Banking Division was advising Linas Agro Group in land plots divestment transaction.
"We are very proud to assist Linas Agro Group in its strategic plans implementation. We are totally sure that proceeds received from the transaction will be fruitfully used for further Group's development", said Jonas Kvedaravicius, Head of Swedbank Investment Banking Division.
About AB Linas Agro Group
AB Linas Agro Group together with its subsidiaries makes a Group of companies, that have been founded in 1991 and operates in four countries - Lithuania, Latvia, Estonia and the Ukraine.
AB Linas Agro Group together with its subsidiaries has over 2,100 employees. The financial year of the Group begins on 1 July. Consolidated revenue of AB Linas Agro Group in 2019/20 financial year totaled EUR 658 million, net profit was EUR 10 million, assets amounted to EUR 405 million.
The companies of the Group produce, handle and merchandise agricultural and food products, also provide products and services for farming. The Group is the leading exporter of Lithuanian and Latvian grain and has own network of 13 grain elevators. Also is one of the leaders in supplies of agricultural inputs (such as certified seeds, fertilizers and agricultural machinery) in Lithuania, has seed processing plant. The Group owns seven agricultural companies in Lithuania and is a major milk producer. It is the biggest poultry producer in Latvia as well and has four poultry companies.
Additional information will be provided by:
Mažvydas Šileika, Finance Director of AB Linas Agro Group
Mob. +370 619 19 403
E-mail m.sileika@linasagro.lt (mailto:m.sileika@linasagro.lt)
