Linas Agro Group AB - Notification on material event

AB Linas Agro Group is planning the purchase of one more agricultural company

Panevezys, Lithuania, 2012-05-10 14:01 CEST (GLOBE NEWSWIRE) -- A subsidiary of
AB Linas Agro Group UAB Linas Agro Konsultacijos signed purchase and sale
agreement of shares with stakeholders of Labūnavos agricultural company on
acquisition of 87% of shares of Labūnavos agricultural company. The agreements
shall come into force if there are no objections from Competition Council, the
decision from which is expected in the middle of July. UAB Linas Agro
Konsultacijos are planning to spend LTL 21.4 million on the acquisition of
shares. 

Labūnavos agricultural company was established in Kėdainiai district in 1992.
The company cultivates 2,800 ha of land. The scope of its activities includes
dairy and meat production (600 dairy cows and 100 beef cattle), oilseed rape,
wheat, barley and corn cultivation. There are 125 employees at the company. In
2011, its turnover totaled LTL 16.3 million, EBITDA (earnings before interest,
tax, depreciation and amortization) amounted to LTL 5.2 million and the net
profit was LTL 3.7 million. The company has almost 500 ha of its own land and
the total assets worth LTL 34.4 million LTL. 

“This investment is a continuation of our planned expansion in agricultural
production area. Acquisition of agricultural companies is part of our long-term
strategy, which includes plans to expand the area of cultivated land up to 20
thousand ha by acquiring most promising agricultural companies. Labūnavos
agricultural company has big potential because it is  one of the leading
agricultural companies in Lithuania, its activities are diversified and its
turnover and net profit are growing each year. But the most important thing is
that the company's activities have always been profitable. After acquisition of
Labūnavos agricultural company the area of cultivated land owned by our Group
will exceed 14 thousand ha”, commented Deputy Managing Director of AB Linas
Agro Group Andrius Pranckevičius. 

AB Linas Agro Group controls five more agricultural companies in the most
yielding Lithuanian areas - Panevėžys district Aukštadvario ŽŪB, Šakiai
district Lukšių ŽŪB, Biržai district Medeikių ŽŪB, Sidabravo ŽŪB and Užupės
ŽŪB. Their activity covers dairy production, cultivation of grains, oilseed
rape and sugar beet. 

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 five 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