CEE Legal Matters published an article: Dominas Derling and Leadell Advise on Litagra Group Transfer of Trading Business to Achema Group.<\/p>\n
As a result of the deal, Achema Group acquired Litagra group\u2019s trading business and grain elevators network, i.e. Litagros Prekyba AB, along with its Latvian subsidiary Litagra SIA. The previous owners will retain the name \u201cLitagra,\u201d though the acquired companies will be able to use it until 2019.The deal was announced by Invalda INVL \u2013 an asset management company that invested in Litagra in 2011, acquiring a 36.9% equity stake \u2013 on February 27. Other major shareholders in Litagra are Gintaras Kateiva and the Amber Trust II investment fund. According to the Invalda press release, the Litagra group has \u201cdecided to focus on production activities\u201d and will continue to run its primary farming production business.\u201cWe think the funds we invested and our intellectual contribution have strengthened the company and had a positive impact on the growth of Litagra\u2019s value,” said Darius Sulnis, the President of Invalda INVL and a Member of the Board of Litagra. “We\u2019ve participated actively in preparing for the reorganization of the Litagra group and the mutually beneficial transaction with Achema Group. Litagra will continue to focus on production business where it can benefit from competitive advantages as a participant in the global food supply chain.”<\/p>\n
\u201cIn line with the long-term strategy of the concern, we\u2019re expanding operations in one of our core areas \u2013 agricultural services business,” added Audrius Bendaravicius, the CEO of Achema Group and Chairman of the Board of Agrochema. “Integration, after the transaction, of Litagra\u2019s trading operations into the group of companies that the concern owns will strengthen the group company Agrochema which has analogous activities, broaden its activities, and complete the supply chain from the grain elevators to the Klaipeda port.”<\/p>\n
Completion of the transaction is planned after obtaining the approval of the Competition Council and carrying out other actions foreseen in the agreement, including the reorganization of Litagra. The final amount of the transaction depends on Litagra\u2019s financial indicators on the accounting date of the transaction and will only be clear after the transaction is completed.<\/p>\n