Lietuvos energijos gamyba, AB - Notification on material event

Regarding signing of the agreement on sale of commercial part of business of wholesale electricity trade of “Lietuvos energijos gamyba”, AB

Elektrėnai, Lithuania, 2015-10-12 16:00 CEST (GLOBE NEWSWIRE) -- “Lietuvos
energijos gamyba”, AB (company code 302648707, registered office at Elektrinės
st. 21, Elektrėnai; the Company), informs that on 12 October 2015 Company and
Energijos tiekimas UAB (Energijos tiekimas) signed agreement on sale of
commercial part of business of wholesale electricity trade. The Company
published the announcement on material event on this topic on the 3 September
2015. 

The part of business consists of the trade activities, which are not related to
physical electricity trading, through financial derivatives and the provision
of balancing services. The Company will continue earning income from
electricity generated in its power plants and sold on the market as well as
from the ancillary services provided to Transmission System Operator. No
significant tangible assets that belong to the Company will be transferred to
the buyer of business during the business sale transaction. 

Energijos tiekimas will pay to the Company 13.1 million EUR in instalments
until 31 March 2017. Another 8 million EUR (2 million EUR a year) can be paid
as an earn-out provision depending on the results of the part of business to be
sold over the next four years. Total final amount of transaction, subject to
the implementation of any and all terms and conditions provided in thecontract, can reach 21.1 million EUR. 

Title of ownership of the part of business will pass to Energijos tiekimas on 1
January 2016. Up to this time, the Company will carry out the sold activities. 

This agreement was concluded by implementing the value chain development
program of Lietuvos Energija Group, including the leaning of the Company's
production activities through the separation of a part of commercial
electricity wholesale trade activities performed by the Company. 


         Valentas Neviera, Head of Corporate Communication Division, tel. +370
670 25997, e-mail. valentas.neviera@le.lt