Invalda AB - Notification on material event

Resolutions adopted by the Extraordinary General Shareholders Meeting of Invalda LT, AB

Vilnius, Lithuania, 2014-02-05 08:34 CET (GLOBE NEWSWIRE) -- The Extraordinary
General Shareholders Meeting of Invalda LT, held on 5 February 2014, adopted
the following resolutions: 

1. Regarding approval of preparation of the terms of split-off of Invalda LT,
AB. 
Resolution:
1.1. To approve preparation of the terms of split-off of Invalda LT, AB.
1.2. To authorize the Board to draw up the terms of split-off of Invalda LT, AB
as well as to sign contracts necessary for the preparation and assessment of
the said terms, and conduct other related actions. 

Additional information:
The approval of the shareholders of Invalda Lt to prepare the split-off terms
will allow to realize the earlier announced decision to concentrate into asset
management business. 
It is planned to separate agricultural land, real estate and information
technologies (IT) companies from Invalda LT. These companies will apply for
closed-end investment company licenses. All shareholders of Invalda LT
(presently there are about 4000 shareholders of the company) will
proportionally own shares in the separated companies. All the shares of the
newly established companies are planned to be quoted on the NASDAQ OMX Vilnius
Exchange. 
The Board expects to announce the split-off terms in the first quarter of this
year and the shareholders will vote upon the approval of the terms. Invalda LT
will establish the management company which will manage separate companies, in
essence similar to investment funds. 
All separated companies will seek to raise additional capital thus increasing
the liquidity. 
The reorganization will allow investors to select the asset or business in
which they would like to invest. The investors will be able to select the risk
level as well as the term of the investments. By licensing the activities and
being under the supervision of the Bank of Lithuania, there will be an increase
in transparency and reduction in investment risk. 
The agricultural land investment company will be established on the basis of 17
companies (altogether they own about 3 thousand hectare of land in Lithuania)
owned by Invalda LT, AB. "It is planned that this company will not use borrowed
capital. We think that a company generating stable cash flow that exceeds the
inflation rate and has a small degree of risk might be an appropriate long-term
savings instrument, an alternative to investments in deposits and bonds”, - Mr.
Sulnis said. 
According to Mr. Sulnis, the low land price (compared to analogous agricultural
regions in the European Union), long farming traditions and increasing
efficiency allow expecting the increase of both rental income and land price. 
The real estate investment company should be established on the basis of the
currently operating company Invaldos Nekilnojamojo Turto Fondas, AB. At the
present Invalda LT group owns commercial real estate objects in Lithuania with
the total area of 50 thousand square meters. 
„We think that the location of our object is very good. They generate stable
cash flow and most of them have a potential of value increase through the
development. One of our priorities is the maximization of cash flow from our
property. Also, upon the economic rationale, we intend to allocate funds for
the renovation of the owned objects or for the acquisition of the new ones”, -
Darius Sulnis, the president of Invalda LT, said. 
The first investment of the IT investment company would be 80 % of shares in
BAIP Group. This group currently owns companies in Lithuania, Norway and
Tanzania. Moreover, it has implemented projects in more than 50 countries. 
“Lithuania is the exporter of the IT services. Many start-up and mature
companies' business models are suitable for the international markets and
growth of value". - Mr. Sulnis, said. 
Invalda LT, AB will concentrate on asset management business and will seek to
receive the main income from the management activity. 
The implementation of the planned asset management changes will depend on the
decisions of the Shareholders Meeting and the Bank of Lithuania. Therefore,
there is a possibility that the reorganisation of a part of it may not happen
or the structure of the proposed reorganisation may change. 


         The person authorized to provide additional information:
         Darius Sulnis
         President
         Phone +370 5279 0691
         E-mail: Darius@InvaldaLT.com