City Service SE
Notification on material event

AB City Service has acquired an enterprise in Poland

Vilnius, Lithuania, 2012-12-18 08:00 CET -- On 17 December, 2012 AB City Service has signed an agreement with Ministry of Treasury of Poland, fully paid and gained title of ownership to Zespół Zarządców Nieruchomości WAM Sp. z o.o. (ZZN further on) 100% share stock. The value of the transaction was PLN 45 million, including related taxes.

According to unaudited results for 10 months of 2012 for ZZN, revenues were PLN 80.6 million, net profit reached PLN 2.6 million. Total assets of ZZN as of October 31, 2012 were PLN 88.6 million, including cash at bank balance of PLN 20.5 million, shareholders’ equity was PLN 80.6 million. ZZN had no interest bearing debt.

ZZN provides residential apartment building management services, also acts as producer and supplier of heat in Poland. ZZN manages 8.5 million sq. meters of residential facilities and has 22 offices in main towns in Poland, with 900 employees. The enterprise holds 3.4% share of Poland’s residential facility management market and provides services to approximately 4000 commonwealths of residential apartment houses. In Poland there are approximately 146.000 commonwealths with 250 million sq. m. of residential housing area in their possession. There are also approximately 3700 cooperatives of residents with 150 million sq. meters of housing area in their possession.

Žilvinas Lapinskas, General Director of AB City Service, reminded that this acquisition for City Service group is a very important platform for a strategic step into large and prospective market of facility management services. In Poland, City Service plans to provide services not only for residential buildings, but also for commercial, public buildings and industrial objects.

City Service controls the largest group of integrated utility service companies in Central and Eastern Europe. The Group acts in Lithuania, Latvia, Russia and Poland.  Area of facilities under management by the Group amounts to 24.7 million sq. meters.

         Vilius Mackonis,
         Head of communication
         +370 5 239 4900