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EBRD intends to sell its stake in Lithuanian dairy company
Management buyout follows successful restructuring and investment programme
The EBRD has entered into an agreement to sell its 25.7 per cent stake in AB
Rokiskio Suris, a company listed on the National Stock Exchange of Lithuania
for LIT 45.1 per share, or LIT 55 million (€15.9 million). Another
shareholder, the East European Food Fund, in which the EBRD is an investor,
also intends to sell its 15.4 per cent in the company.
The EBRD signed a Share Purchase Agreement with a Lithuanian company “UAB
Survesta”. UAB Survesta, together with a new company representing Rokiskio
Suris’ management, UAB Pieno Pramones Investicijou Valdymas, and with Antanas
Trumpa are acting as a consortium to acquire the shares of EBRD and EEFF.
Today, Rokiskio Suris is the largest listed dairy company in the Baltic
States, producing cheese for the EU and US markets and fresh dairy products
for the local market. Since the EBRD and East European Fund made their
investments in 1999, Rokiskio Suris has undertaken a restructuring and
modernisation process which has led to growth in revenues and an increase in
company value. Ahead of EU accession in May, the company has been instrumental
in the consolidation of the local dairy sector to form larger-scale dairy
companies that may compete more strongly in open markets.
Noreen Doyle, EBRD First Vice President, said the Bank’s decision to sell its
stake in Rokiskio Suris is a reflection of the company’s completion of
objectives set by the Bank for its investment. She added that the Bank, after
careful consideration, has accepted the offer, not least because the
consortium has made the necessary funding arrangements, received Competition
Council approval in principle and has made a commitment to extend the offer to
all shareholders at the same price.
Speaking for the Lithuanian consortium, Antanas Trumpa, the CEO of Rokiskio
Suris, welcomed the agreement and expressed appreciation for the contribution
to the company’s success by the EBRD and the East European Food Fund. He
confirmed that the consortium is making an open offer to all of the remaining
shareholders at the same price, LIT 45.1 per share, and said the company looks
forward to continuing to develop its leading position in the market.
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