Taking into account the growing volume of the production and sales of corrugated cardboard and striving to ensure a more efficient management of corrugated cardboard production business, its further development and business profitability increase, on the 2nd  of January, 2019 AB Grigeo transferred a part of its business – the corrugated cardboard production business (hereinafter – the Business) to its 100 % owned subsidiary UAB Grigeo Packaging, legal entity code 302329061, address Vilniaus g. 10, Grigiskes, Vilnius City municipality, the Republic of Lithuania, data about the company is collected and stored in the Register of Legal entities of the Republic of Lithuania

The transfer of the Business to UAB Grigeo Packaging is implemented by increasing the authorized capital of UAB Grigeo Packaging and paying for the entire new issue of shares by AB Grigeo by contribution other than in cash, i.e. by the Business, as a complex of assets, rights and obligations that from an organizational point of view is an autonomous economic unit, in exchange for new ordinary shares of UAB Grigeo Packaging.

Business, as a contribution other than in cash, was transferred to UAB Grigeo Packaging by AB Grigeo on the basis of the Share subscription agreement signed on the 2nd of January, 2019. According to the Business valuation report issued by an independent property valuer on the 6th of November, 2018, the value of the transferred Business is EUR 15.2 million. AB Grigeo will acquire all the newly issued shares of UAB Grigeo Packaging after the Articles of Association of UAB Grigeo Packaging, which were amended as the result of the increase of the authorised capital will be registered in the Register of Legal Entities of the Republic of Lithuania.

Considering the opinion of the Audit Committee of AB Grigeo on the conclusion of the transaction with the related party given on 31st October, 2018, the transaction of AB Grigeo with the related party UAB Grigeo Packaging, i.e. transfer of the Business to UAB Grigeo Packaging on the basis of the Share subscription agreement is fair and reasoned as regards AB Grigeo and its shareholders who are not a party to the transaction.

After the transfer of the Business to a subsidiary, AB Grigeo and UAB Grigeo Packaging continue their production activities at the same address as before the transfer of the Business – at Vilniaus g. 10, Grigiskes, Vilnius City municipality, the Republic of Lithuania, i.e. the place of the production activities of the Business has not changed. AB Grigeo will concentrate its activities on the production of tissue paper products, and UAB Grigeo Packaging will carry out corrugated cardboard production activities.

 

Source: globenewswire.com

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