Linas Agro Group AB - Notification on material event

AB Linas Agro Group received the permission to acquire poultry companies in Latvia

Panevėžys, Lithuania, 2013-10-28 14:00 CET (GLOBE NEWSWIRE) -- AB Linas Agro
Group, that have signed agreements with Latvian private and legal persons on
acquisition of 87% of shares in Latvian company AS Putnu fabrika Kekava,
acquisition of 100% of shares in Latvian company SIA Broileks, acquisition of
100% of shares in Latvian company SIA Cerova and acquisition of 100% of shares
in Latvian company SIA Lielzeltini a few months ago, received the permission of
the Competition Council of the Republic of Latvia to acquire poultry companies
in Latvia. The transactions should be completed by January 2014. 

AB Linas Agro Group estimates to spend EUR 13 million on acquisition of shares
of the Latvian companies. 

The largest of the purchased companies is a full cycle chicken meat producer AS
Putnu fabrika Kekava (PFK), which cover the entire production cycle, from egg
laying to the chicken and its products production. The other three companies
are already co-operating: SIA Cerova hatch eggs and sells day-old chicks to
companies Lielzeltini and Broileks. SIA Broileks raise chickens and sell them
to Lielzeltini. While Lielzeltini raise chickens and produce poultry products,
also produce feed for all other companies. AB Linas Agro Group plans to
implement vertical integration in acquired companies - feed production,
incubation and rearing, slaughtering and meat processing. "We enter the business area, food production, that is closely related to our
core business. By acquiring these companies we expect positive synergy with our
core activities as we are one of the largest feedstuff suppliers in the
Baltics. Feedstuff accounts for a vast majority of cost of goods produced in
poultry companies. To quickly gain know-how in poultry business, we are
currently collecting team that will develop our new business in Latvia. We are
not newcomers to Latvia - two companies of our Group, running business in
Latvia, earned LTL 218 million revenue and nearly LTL 14 million gross profit
during the financial year 2012/2013", says AB Linas Agro Group Deputy Managing
Director Andrius Pranckevičius. 

Revenue of AS Putnu Fabrika ĶEKAVA ( PFK ) reached EUR 33 million in 2012, SIA
Lielzeltini gained EUR 21 million revenue, SIA Broileks - EUR 1.2 million, SIA
Cerova - EUR 2 million. 

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 and other companies. The financial year of the Group begins on 1
July. The total headcount of the Group exceeds 1,140 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