Linas Agro Group
Notification on material event
AB Linas Agro Group is planning the purchase of 50% of shares of UAB Dotnuvos projektai
Panevezys, Lithuania, 2012-08-06 10:47 CEST --
AB Linas Agro Group signed agreements with natural persons, the shareholders of UAB Dotnuvos projektai, on acquisition of 50% of shares of the company. The agreements shall come into force if there are no objections from Competition Council. AB Linas Agro Group is planning to spend LTL 32 million on the acquisition of shares.
UAB Dotnuvos projektai, established in 1996, is among the leading sellers of agricultural machinery, seeds and grain storage equipment in Lithuania. Together with its subsidiaries, the company has 214 employees. The main activity of the company is wholesale and retail trade of new and used agricultural machinery and its spare parts, seed production, processing and sales, as well as design and construction works of grain cleaning, drying and storage facilities. UAB Dotnuvos projektai manages subsidiary companies in Latvia and Estonia and four Lithuanian branches in Joniškis, Pasvalys, Vilkaviškis and Plungė. The turnover of the company totaled LTL 193 million in 2011, EBITDA reached LTL 15.5 million, while the turnover of the first six months of 2012 totaled LTL 98 million.
AB Linas Agro Group purchased 50% of UAB Dotnuvos projektai shares in 1999. The current plan is to acquire the rest 50% and take over the management of the company.
“UAB Dotnuvos projektai is among the leaders in each field it operates and all fifteen years of its business have been profitable. It has become a large-scale international company, the growth of which has especially been rapid over the past five years. The management of the company has gathered experienced team of professionals, and that is one of the company’s strongest sides. The experience of Linas Agro Group would ensure successful continuation of efficient service to farmers and the highest level of services to other customers.
The company is a definite Lithuanian leader in seed processing and trading as well as in constructing grain storage facilities and takes significant part of the market. UAB Dotnuvos projektai is among three market leaders trading western machinery.
Our aim is to increase the present market share in Lithuania, but the main expansion will take place abroad. The company received exclusive rights to sell Case IH and Kvernland Group agricultural machinery in Latvia and Estonia, countries that has good potential for the growth of market share. In 3-4 years, the company is expected to take the same leading market positions in Latvia and Estonia as it has in Lithuania. We will also search for opportunities to expand in neighbouring markets – Kaliningrad region (Russia) and Belarus”, commented Deputy Managing Director of AB Linas Agro Group Andrius Pranckevičius.
About UAB Dotnuvos projektai
The company sells approx. 11-13 thousand tons of seeds, 900-950 units of agricultural equipment, erects or modernizes 20-25 grain storages of various sizes per year and has over 5,000 clients.
Since its establishment, the company has been trading various agricultural machinery imported from well-known Western European producers: Case IH, Kverneland Group, Bogballe, Faresin, Irrimec, Einböck, Quicke, Joskin, Agrifac tractors, combine harvesters for grain crops and feedstuffs, ploughs, scrapers, cultivators, harrows, seeders, harrows for crop maintenance, feedstuff handling machines, frontloaders and telescopic handlers, overhead irrigation and manure handling equipment.
Since 1999, the company has been engaged in design works for grain drying and storage facilities, as well as equipment supply and construction projects management, representing such well-known producers as Cimbria, BIN, Kongskilde.
The first seed processing plant in Lithuania, established by UAB Dotnuvos projektai in 2003, is capable of preparing up to 15 thousand tons of seeds per year. In 2011 new seed warehouse of 3,500 m2 was built in Dotnuva. In cooperation with Institute of Agriculture (LRCAF), and famous international seed companies: DLF Trifolium, Rapool, Saaten Union, DSV, Maribo Seed, Lantmannen SW Seed, RAGT, I.G. Planzenzucht, BayWa and other plant breeders, the company produces and sells seeds of cereals, oil seed rape, sugar beet, fodder beet, fodder grass, lawn grass, pulses and others. The seeds are sold in Lithuania, Latvia, Estonia, Russia, Belarus and Ukraine.
In 2007, modern agricultural machinery service center was launched.
In 2010, were founded subsidiary companies - SIA Dotnuvos projektai in Latvia and AS Dotnuvos projektai in Estonia.
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 six 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.
Deputy Managing Director of AB Linas Agro Group
Phone +370 687 71 419