City Service AB - Notification on material event

On closing of UAB Ecoservice shares transfer transaction

Vilnius, Lithuania, 2014-03-31 21:00 CEST (GLOBE NEWSWIRE) -- On 31 March 2014
Ecoservice UAB, registration no. 123044722, share transfer transaction was
closed. The share purchase agreement was concluded on 21 February 2014. The
final amount of transaction was LTL 56.6 million (EUR 16.4 million), including
dividends amounting to LTL 5.2 million (EUR 1.5 million) paid to City Service
AB. 

City Service AB (hereinafter referred to as the Company) and its subsidiaries
shall not be involved in waste management activities after closing and thus
shall fulfil requirements of Civil code of Republic of Lithuania, according to
which companies acting as residential facility managers cannot be related to
waste management companies. 

The shares of Ecoservice UAB is transferred to AWT Holding UAB, whose controland controlling interest, i. e. 75 per cent, shall be owned by the BaltCap
Private Equity Fund II and the remaining 25 per cent of interest shall be owned
by the Company. Accordingly, the Company's investment into the authorized
capital of AWT Holding UAB shall be LTL 5.1 million (EUR 1.48 million), and
final amount received by the Company shall be LTL 51.5 million (EUR 14.9
million). After the transaction the Company shall not have priority rights to
purchase AWT Holding UAB shares, as granted by the Law of Companies of the
Republic of Lithuania. 

Ecoservice UAB is a Lithuanian waste processing company, which, together with
its subsidiaries, is engaged in collection, transportation and processing of
secondary raw materials and household waste. The audited consolidated activity
revenues of Ecoservice Group in 2013 amounted to LTL 55 million (EUR 15.92
million), the activity profit - LTL 6.34 million (EUR 1.84 million). Ecoservice
UAB is listed as assets held for sale in 2013 non-audited financial statements
of the Company, and net profit from discontinued activities in income
statements was LTL 5.78 million (EUR 1.7 million). 

The BaltCap Private Equity Fund II, launched by the dedicated private equity
and venture capital investor BaltCap, invests into small and medium companies'
shares and into capital development in the Baltic States. 

The Company's financial advisors were Porta Finance, legal services were
provided by the law firm Tark Grunte Sutkienė. 


         Vilius Mackonis,
         Director of Marketing and Communication Department
         +370 5 239 4900