AUGA group, RAB, legal entity code 126264360 (hereinafter - the Company), implementing one of the four strategic actions set out in the Company's restructuring plan, on 4 December 2025 signed a binding preliminary agreement with a Latvian-capital company Global Champs, UAB, legal entity code 307494558 owned by Mhitarjans family (hereinafter - the Buyer), for the sale of 100% of the shares (hereinafter - the Agreement) of UAB "Baltic Champs", legal entity code 302942064 (hereinafter - Baltic Champs).
As provided in the Company's court-approved restructuring plan, the majority of the funds received from the sale of Baltic Champs shares will be used to redeem the private bonds issued by UAB "AWG investment 1", a company directly controlled by the Company, (issue ISIN LT0000409104, total nominal value - EUR 4,984,000). These bonds (hereinafter - the Bonds) are secured by a pledge over 100% of Baltic Champs shares.
Considering the pledge of Baltic Champs shares, the Company's restructuring plan and other relevant circumstances, the transaction will be completed and the final share sale agreement of Baltic Champs will be concluded, with the ownership rights to the Baltic Champs shares transferred to the Buyer once the following are obtained: approval and consent of the meeting of Bondholders to sell the pledged assets, approval of the Company's creditors' committee, permission from the Competition Council to implement the concentration, consent of Baltic Champs' creditors regarding the change of control, consent from the National Land Service for the acquisition of land, and fulfillment of other customary preconditions for such transactions.
To implement these conditions as quickly and efficiently as possible, the Company, together with UAB "AWG investment 1," will immediately contact the Bondholders trustee with a request to convene a meeting of Bondholders, where consent to sell the pledged assets will be sought.
The sale price of Baltic Champs shares will be calculated using the formula set out in the Agreement, which is aligned with the Company's restructuring plan. The formula-based price of the Baltic Champs shares will exceed the amount required to fully and properly redeem the Bonds and to pay the accrued and unpaid interest to the Bondholders.
This step will not only reduce the financial liabilities of the Company's group (hereinafter - the Group) by EUR 4,984,000, but will also cover the interest accrued and unpaid up to the completion of the transaction. Since the final sale price of the Baltic Champs shares will be determined at the time of closing, a decision on how the remaining part of the price will be used will be made later. All of this will allow the Group to save on interest expenses, as this bond issue carries a high annual interest rate of 14%. The implementation of this transaction will have a dual positive effect - both on the financial flows of the Company and its Group, and on the reduced overall debt level - and will directly contribute to the main objective of the restructuring: to ensure the continuity of the Group's operations, restore the solvency of all Group companies, reduce the financial burden and fulfil obligations to creditors.
CEO of AUGA group, RAB
Elina Chodzkaite - Barauskiene
+370 5 233 5340
