Linas Agro Group AB - Notification on material event

AB Linas Agro Group is planning the purchase of 50% of shares of UAB Dotnuvos projektai

Panevezys, Lithuania, 2012-08-06 10:47 CEST (GLOBE NEWSWIRE) -- AB Linas Agro
Group signed agreements with natural persons, the shareholders of UAB Dotnuvos
projektai, on acquisition of 50% of shares of the company. The agreements shall
come into force if there are no objections from Competition Council. AB Linas
Agro Group is planning to spend LTL 32 million on the acquisition of shares. 

UAB Dotnuvos projektai, established in 1996, is among the leading sellers of
agricultural machinery, seeds and grain storage equipment in Lithuania.
Together with its subsidiaries, the company has 214 employees. The main
activity of the company is wholesale and retail trade of new and used
agricultural machinery and its spare parts, seed production, processing and
sales, as well as design and construction works of grain cleaning, drying and
storage facilities. UAB Dotnuvos projektai manages subsidiary companies in
Latvia and Estonia and four Lithuanian branches in Joniškis, Pasvalys,
Vilkaviškis and Plungė. The turnover of the company totaled LTL 193 million in
2011, EBITDA reached LTL 15.5 million, while the turnover of the first six
months of 2012 totaled LTL 98 million. 

AB Linas Agro Group purchased 50% of UAB Dotnuvos projektai shares in 1999. The
current plan is to acquire the rest 50% and take over the management of the
company. 

“UAB Dotnuvos projektai is among the leaders in each field it operates and all
fifteen years of its business have been profitable. It has become a large-scale
international company, the growth of which has especially been rapid over the
past five years. The management of the company has gathered experienced team of
professionals, and that is one of the company's strongest sides. The experience
of Linas Agro Group would ensure successful continuation of efficient service
to farmers and the highest level of services to other customers. 

The company is a definite Lithuanian leader in seed processing and trading as
well as in constructing grain storage facilities and takes significant part of
the market. UAB Dotnuvos projektai is among three market leaders trading
western machinery. 

Our aim is to increase the present market share in Lithuania, but the main
expansion will take place abroad. The company received exclusive rights to sell
Case IH and Kvernland Group agricultural machinery in Latvia and Estonia,
countries that has good potential for the growth of market share. In 3-4 years,
the company is expected to take the same leading market positions in Latvia and
Estonia as it has in Lithuania. We will also search for opportunities to expand
in neighbouring markets - Kaliningrad region (Russia) and Belarus”, commented
Deputy Managing Director of AB Linas Agro Group Andrius Pranckevičius. 



About UAB Dotnuvos projektai

The company sells approx. 11-13 thousand tons of seeds, 900-950 units of
agricultural equipment, erects or modernizes 20-25 grain storages of various
sizes per year and has over 5,000 clients. 

Since its establishment, the company has been trading various agricultural
machinery imported from well-known Western European producers: Case IH,
Kverneland Group, Bogballe, Faresin, Irrimec, Einböck, Quicke, Joskin, Agrifac
tractors, combine harvesters for grain crops and feedstuffs, ploughs, scrapers,
cultivators, harrows, seeders, harrows for crop maintenance, feedstuff handling
machines, frontloaders and telescopic handlers, overhead irrigation and manure
handling equipment. 

Since 1999, the company has been engaged in design works for grain drying and
storage facilities, as well as equipment supply and construction projects
management, representing such well-known producers as Cimbria, BIN, Kongskilde. 

The first seed processing plant in Lithuania, established by UAB Dotnuvos
projektai in 2003, is capable of preparing up to 15 thousand tons of seeds per
year. In 2011 new seed warehouse of 3,500 m2 was built in Dotnuva. In
cooperation with Institute of Agriculture (LRCAF), and famous international
seed companies: DLF Trifolium, Rapool, Saaten Union, DSV, Maribo Seed,
Lantmannen SW Seed, RAGT, I.G. Planzenzucht, BayWa and other plant breeders,
the company produces and sells seeds of cereals, oil seed rape, sugar beet,
fodder beet, fodder grass, lawn grass, pulses and others. The seeds are sold in
Lithuania, Latvia, Estonia, Russia, Belarus and Ukraine. 

In 2007, modern agricultural machinery service center was launched.

In 2010, were founded subsidiary companies - SIA Dotnuvos projektai in Latvia
and AS Dotnuvos projektai in Estonia. 



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, group of six agricultural companies UAB Linas Agro
Konsultacijos, operator of lignin biofuel accumulation UAB Lignineko and other
companies. The financial year of the companies begins on 1 July. 

Together with partners, the controlling company owns agriculture-related
products and services providing company UAB Dotnuvos projektai and logistics
company UAB Jungtinė ekspedicija. 

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