Lietuvos Dujos - Notification on material event

Lietuvos Energija Group company NT Valdos acquired real estate owned by Lietuvos Dujos

Vilnius, Lithuania, 2015-12-23 15:47 CET (GLOBE NEWSWIRE) -- Public limited
liability company Lietuvos Dujos, identification code 120059523, the address of
the head office: Aguonų St. 24, LT-03212 Vilnius, The Republic of Lithuania.
The total number of registered ordinary shares issued by the Company 290 685
740, ISIN code LT0000116220. 

In order increase operating efficiency and save costs, also in light of the
practice to focus on the performance of core activities prevailing in energy
group Lietuvos Energija, Group companies Lietuvos Dujos and NT Valdos entered
into a purchase-sale agreement, whereby NT Valdos acquired real estate owned by
Lietuvos Dujos, namely, office buildings, warehouses and other. The value of
the transaction of the sale of assets totalled EUR 16.5 million. The assets
were sold at a market price of the real estate determined by independent
property appraisers OberHaus and Matininkai. 

“Having implemented the performance management reform of Lietuvos Dujos in
2015, some space in buildings owned by the company was vacated and building
maintenance specialists were dismissed. After the implementation of
organizational changes, we still see a potential for making operations more
efficient. Management and administration of non-technologic assets is not the
core activities of the company, and further operation thereof would become
economically unviable, thus the Board of the company made a decision to sell
the assets” - said  Liudas Liutkevičius, Chairman of the Board and CEO of
Lietuvos Dujos. 

In preparation for the merger of Lietuvos Dujos and LESTO scheduled to take
place on 1 January 2016, the reorganization terms of the companies provided for
the fact that in the performance of the reorganization of the companies, giving
up a part of assets unrelated to core activities of Lietuvos Dujos was planned,
transferring them at a charge, namely, at market value. 

Having sold the assets, the procurement of the lease of premises necessary for
performing direct activities will be held. That way, the company will gain more
flexibility responding to the need for floor space. Leasing as much of the
floor space as is necessary for ensuring the performance of activities will be
possible. Calculations have been made revealing that such an organizational
change starting from 2016 will allow the company to reduce regulatory costs and
save about EUR 1 million per year in the future. 

NT Valdos, a company having concluded the transaction on the purchase-sale of
real estate with Lietuvos Dujos, is one of the major real estate management
companies providing real estate and transport lease services throughout
Lithuania. NT Valdos is owned by Lietuvos Energija Group. 

Pursuant to Corporate Governance Guidelines of State-Owned Energy Group
approved by the Minister of Finance, this act fully completes the process of
the integration of Lietuvos Dujos into Lietuvos Energija Group. Seeking to
refine its activities in 2015, Lietuvos Dujos implemented more than 25
structural, organizational, functional and management changes, which allowed
the company to conduct its activities more efficiently and, as from the
following year, to save about EUR 2.3 million per year. 


         Head of Communications Laura Šebekienė, Ph. No +370 633 99940