AB Grigeo plans to transfer part of the business (corrugated cardboard production) to a subsidiary company

thof October, 2018 the Board of AB Grigeo adopted a decision to transfer a part of the business of AB Grigeo - the corrugated cardboard production business (hereinafter - the Business) to its 100 % owned subsidiary UAB Grigeo Packaging, legal entity code 302329061, address Vilniaus g. 10,...

Taking into account the growing volume of production and sales of corrugated cardboard, 26/10/2018 (informazione.it - comunicati stampa - agricoltura)

of October, 2018 the Board of AB Grigeo adopted a decision to transfer a part of the business of AB Grigeo - the corrugated cardboard production business (hereinafter - the Business) to its 100 % owned subsidiary UAB Grigeo Packaging, legal entity code 302329061, address Vilniaus g. 10, Grigiškės, Vilnius City municipality, the Republic of Lithuania, in exchange for the newly issued shares of UAB Grigeo Packaging.

The transfer of the Business to UAB Grigeo Packaging will be implemented by increasing the authorized capital of UAB Grigeo Packaging. AB Grigeo will make payment for the entire new issue of shares 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, will be transferred to UAB Grigeo Packaging on the basis of the Share subscription agreement and the Business Acceptance-Transfer Act (hereinafter together referred to as the Transaction). The Transaction is intended to be concluded on the 2 of January, 2019 in accordance with the requirements established in the legal acts of the Republic of Lithuania.

After the transfer of the Business to a subsidiary, AB Grigeo and UAB Grigeo Packaging will continue their production activities at the same address as before the transfer of the Business – at Vilniaus g. 10, Grigiškės, Vilnius City municipality, the Republic of Lithuania. AB Grigeo will concentrate its activities on the production of tissue paper products, and UAB Grigeo Packaging will carry out corrugated cardboard production activities.

The Board of AB Grigeo believes that concentration of corrugated cardboard production in a separate company will ensure greater clarity and efficiency of the management of the Business and, in the short term, will not have a significant impact on the financial indicators of the AB Grigeo group of companies.