AUGA Group, AB sold investment units of investment

AUGA group has sold investment units of investment fund Fixed Yield Invest Fund controlled by the fund management company Synergy Finance to selected financial institutional investor.

Value of transaction –. EUR 7.2 million. The disposal of long term investment asset allows Company to  attract new funds and finally divest of such investment asset .

Funds from transaction will be used for development of newly acquired business (formerly agricultural subsidiaries of KTG AGRAR) and for development of other ongoing projects, related to introduction of sustainable organic farming technologies in existing agricultural locations and farms.

Company has transferred shares of the companies which controlled land operating subsidiaries (managing around 6.4 thousand hectares of land) in December 2015.

By selling investment units of investment fund the consolidated long term assets decrease by EUR 24.8 million and consolidated liabilities also decrease by EUR 17.6 million (amongst it - financial liabilities of EUR 14 million).

This transaction will not affect Company’s net result and EBITDA of year 2016.

This transaction does not change anything in the daily business of AUGA group as the group continues to rent the land owned by the transferred companies and will carry out its agricultural activities there while paying the market rent price. The term of land rent reaches 10 years (with prolongation rights).

         Vladas Bagavičius                    AUGA group, AB          Member of the Board                    tel. +37061031807