Linas Agro Group AB - Notification on material event

AB Linas Agro Group has completed the acquisition of Latvian poultry companies and extended loans to two of them

Panevezys, Lithuania, 2014-02-10 14:00 CET (GLOBE NEWSWIRE) -- 

On 7 February 2014, AB Linas Agro Group acquired 100% of the shares in Latvian
poultry companies SIA Lielzeltini, registration number 40003205232, SIA Cerova,
registration number 43603019946, and SIA Broileks, registration number
50103262981. The total purchase price for these shares is about EUR 6.5 million
(the final price may vary depending on additional conditions). 

 In addition, AB Linas Agro Group extended a loan in the amount of EUR
4,711,711 to SIA Lielzeltini and a loan in the amount of EUR 611,231 to SIA
Cerova to refinance their previous loans. Both loans bear interest rate of 4%
per year and have to be repaid by 30 June 2016. 

SIA Broileks, SIA Cerova and SIA Lielzeltini are entities operating in poultry
industry. Their core activity is meat poultry and broilers breeding. SIA
Lielzeltini produces chicken meat and a range of processed chicken meat
products, as well as combined feed for own consumption and sale, its revenue
totaled EUR 26 million in 2013 (EUR 21 million in 2012). SIA Broileks is
engaged in growing and sale of live chicken with the sales revenue of EUR 1.2
million in 2013 (same like in 2012). The core activity of SIA Cerova is
incubation of hatching eggs and sale of day-old chicks. The sales of the
company amounted to EUR 2.5 million in 2013 (EUR 2 million in 2012). 

“We completed the acquisition process of the group of Latvian poultry
companies. It took a little longer than expected, but ended successfully.
Restructuring procedure of the largest Latvian chicken meat producer AS Putnu
fabrika Kekava (PFK) ended in the first half of January. The performance of the
company is good - revenue totaled EUR 39 million in 2013 and were 18% higher
compared to 2012“, said Deputy Managing Director of AB Linas Agro Group Andrius
Pranckevičius. 

AB Linas Agro Group expects that in the future the acquired group of Latvian
companies will generate revenue of around EUR 70 million. 



About AB Linas Agro Group

AB Linas Agro Group is an agribusiness parent company engaged in the production
and trade of grains, oilseeds, feedstuff and agricultural inputs. It controls
companies in Lithuania, Latvia, Estonia and Denmark. The group consists of
international agricultural production trading company in Lithuania AB Linas
Agro, grain storage company UAB Linas Agro Grūdų centras KŪB (controlling grain
storages in Joniškis, Kėdainiai, Kupiškis, Pasvalys, Šakiai district, Šiauliai
and Vilkaviškis), Latvian trading company SIA Linas Agro, international trading
company Linas Agro A/S in Denmark, group of companies ŽŪB Landvesta, managing
agricultural land, holding of agricultural companies UAB Linas Agro
Konsultacijos, agricultural inputs supplier UAB Dotnuvos Projektai, operator of
lignin biofuel accumulation UAB Lignineko, logistic company UAB Jungtinė
Ekspedicija, AS Putnu Fabrika Kekava and other companies. The financial year of
the Group begins on 1 July. The total headcount of the Group exceeds 1,700
employees. Consolidated revenue of AB Linas Agro Group for financial year
2012/2013 ended June 2013 totaled LTL 2,043 million, EBITDA - LTL 127 million. 

Together with partners, the Group owns grain storage company Karčemos
Kooperatinė Bendrovė. 

From 17 February 2010 AB Linas Agro Group is included in the main list of
companies of NASDAQ OMX Vilnius stock exchange. 


         More information:
         Andrius Pranckevičius
         Deputy Managing Director of AB Linas Agro Group
         Phone +370 687 71 419
         E-mail a.pranckevicius@linasagro.lt