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2009-12-24 08:42:49 CET 2009-12-24 08:44:20 CET REGULATED INFORMATION City Service AB - Notification on material eventOn the approval of City Service AB share issue prospectus and planned acquisition of Ecoservice sharesThe largest facility management company group in the Baltic states City Service will purchase waste management company group Ecoservice. This decision is aimed to increase value of City Service group by integration of Ecoservice group and by further rapid expansion of Ecoservice group in Lithuania and foreign markets. Žilvinas Lapinskas, Director General of City Service, stated: Decision to acquire Ecoservice was made estimating the expansion potential this company has and also its plans to develop in St.Petersburg city market. We are sure that successful growth of this promising company inside of City Service group will bring extensive benefits to our shareholders. Ecoservice shares are valued at LTL 56.8 million, according to estimations made by independent valuator Catella Corporate Finance. The planned acquisition price is LTL 55 million. Mr. Lapinskas stated, that the acquisition price was determined by Ecoservice's development perspectives in near future, high efficiency and attractive ratios of the acquisition price to activity indicators for 2009. Ecoservice owns largest waste management company group in Lithuania. Since 2007 the company has actively expanded its activities in Lithuania. Ecoservice group supplies services of collection, transportation and processing recycled materials and municipal waste in Vilnius and Klaipėda cities, Varėna, Trakai, Šilutė, Širvintos and Pagėgiai districts. The company has vast network for collection of recycled materials and provides waste sorting service. In 2009, EBITDA of Ecoservice is expected to reach LTL 9.2 million. Funds for acquisition of Ecoservice will be attracted from the new City Service AB share issue. Decision on the issue was made by the Board of City Service on 21 December 2009. The remaining proceeds from the new issue will be kept for financing of new acquisitions in Lithuania and Russia in 2010. The size of the new share issue will be 12,500,000 ordinary registered shares, LTL 1 (one) par value each. The issue price is fixed at LTL 5.06 for 1 ordinary registered share. On 23 December 2009 the Securities Commission has approved the prospectus of the new issue of 12,500,000 ordinary registered shares of City Service AB, code 123905633. The prospectus of City Service new share issue, and short presentation of the new issue and Ecoservice are enclosed with this announcement. Vilius Mackonis Public Relations Officer +370 5 239 4900 |
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