Linas Agro Group - Notification on material event

AB Linas Agro Group sold the rest of lignin accumulation

Panevezys, Lithuania, 2014-06-20 08:00 CEST (GLOBE NEWSWIRE) -- 

AB Linas Agro run by AB Linas Agro Group has sold property belonging to UAB
Fossio - a part of lignin accumulation, real estate and equipment - to UAB
Alternatyvus Biokuras for LTL 6.15 million. 

In January, lignin raw material accumulation in Zabieliskis village in
Kedainiai region was split into two parts, and UAB Fossio has been separated
from the company UAB Lignineko together with 400 thousand cubic meters of
lignin, some real estate and equipment. In May UAB Lignineko with approximately
the same assets was sold to the company UAB ECT Trading. The Group looked for
another buyer for the other part of lignin accumulation. 

Lignin is a raw material for biofuels, but also has other application areas.

“Having acquired UAB Lignineko in May 2010 for nearly 2 million litas we
planned marketing of lignin as a raw material for biofuel, installed lignin
drying equipment. 

In order to obtain a higher added value, we tested other lignin usage options,
like production of plant substrates as lignin is a perfect base for plant
substrates. 

However, we decided that the sale of substrates is too small business for our
Group. Therefore, we looked for potential buyers for lignin accumulation, and
even divided the lignin stock into two parts and basically prepared the ground
for smaller businesses. Total investment in the project was LTL 8.4 million and
earnings gained were LTL 14.45 million, therefore total return of the
investment was 72 percent and annual - 18 percent", says Finance Director of AB
Linas Agro Group Tomas Tumėnas. 

UAB Fossio itself remains the property of the Group.



About AB Linas Agro Group

AB Linas Agro Group is an agribusiness parent company engaged in the production
and trade of grains, oilseeds, feedstuff, poultry and poultry products, also
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, holding of agricultural
companies UAB Linas Agro Konsultacijos, agricultural inputs supplier UAB
Dotnuvos Projektai, logistic company UAB Jungtinė Ekspedicija, poultry
companies AS Putnu Fabrika Kekava and SIA Lielzeltini, also other companies.
The financial year of the Group begins on 1 July. The total headcount of the
Group exceeds 2,200 employees. Consolidated revenue of AB Linas Agro Group of
nine months of 2013/2014 financial year ended March 2013 totalled LTL 1,581
million, EBITDA - LTL 75 million. 

From 17 February 2010 AB Linas Agro Group is included in the main list of
companies of NASDAQ OMX Vilnius stock exchange. 




         More information:
         Finance Director of AB Linas Agro Group
         Tomas Tumėnas
         Mob. + 370 682 36 616
         Email t.tumenas@linasagro.lt