TKM Grupp Completes Strategic Restructuring in Lithuania

Author: Dylan Bailey Updated: 05-29-2025 09:32 AM

TKM Grupp AS Announces Strategic Restructuring

TKM Grupp AS recently made a significant announcement about an intra-group restructuring initiative in Lithuania, driven by its subsidiary TKM Auto OÜ. This move to refine and streamline operations within the car trade sector highlights the company's aim to better differentiate between its KIA and Škoda business lines.

Details of the Demerger

As per the demerger agreement formalized recently, UAB KIA Auto—the dividing company—has successfully transferred its Škoda business line to a newly formed company named Motus auto UAB. This strategic decision aligns with TKM Grupp's overall business strategy to enhance operational efficiency. Following the transfer, UAB KIA Auto will continue its operations under its previously established business name.

Key Dates and Registrations

The separation of the Škoda dealership and associated service line not only aims at improved operational focus but also marks a pivotal moment for the company, as it is officially registered with the Lithuanian Commercial Register.

Strategic Goals of TKM Group

Moving forward, TKM Group intends to strengthen its presence in the automotive market, paying particular attention to enhancing the sales and service networks for KIA and other vehicle brands within the Baltic States. This region stands out as the Group’s second-largest market in terms of sales revenue and profitability, making it a critical area for expansion.

Financial Impact

Interestingly, the creation of Motus auto UAB will not adversely affect the consolidated financial results reported by TKM Group. It is noteworthy to mention that the establishment of this subsidiary does not constitute a significant acquisition in line with Nasdaq Tallinn Stock Exchange regulations.

Management’s Commitment

The senior leadership at TKM Grupp AS, including the supervisory board and management board members, have indicated that they hold no personal interests in the transactions related to this restructuring process. This level of transparency ensures stakeholders can maintain confidence in the Group’s operations.

Contact Information

For further inquiries or detailed information about this restructuring, parties can reach out to Raul Puusepp, Chairman of the Management Board, via phone at 731 5000 or through email at info@tkmgrupp.ee.

Frequently Asked Questions

What was the primary goal of the restructuring by TKM Grupp AS?

The primary goal was to separate the KIA and Škoda business lines to enhance operational efficiency within the automotive trade segment.

When was the demerger agreement signed?

The demerger agreement was officially signed on 22.05.2025, as part of their restructuring process.

How will the new company Motus auto UAB impact TKM Group's operations?

The establishment of Motus auto UAB aims to improve the focus on the Škoda dealership, allowing for better overall performance without significantly impacting TKM Group's financial results.

What is TKM Group's strategic focus moving forward?

TKM Group aims to expand its market presence and profitability in the Baltic States for KIA and other car brands, enhancing its sales and service network.

Who is the contact person for inquiries regarding the restructuring?

Inquiries can be directed to Raul Puusepp, who serves as the Chairman of the Management Board for TKM Grupp AS.

About The Author

My name is Dylan Bailey, and I am 28 years old. I am an author and an expert on the stock market who specializes in publicly traded companies. Early fascination with the stock market inspired me to seek a finance degree and then delve deeply into the world of stocks. I have developed over the years my abilities to spot investment prospects, assess business performance, and analyze market trends.

My books and articles try to help regular investors understand the nuances of the stock market. Anyone can, in my opinion, make wise investment choices and succeed financially if they have the correct information and resources. In my writing, I combine in-depth research with practical insights and advice that can be put into action. This is done with the intention of assisting readers in navigating the constantly shifting landscape of publicly traded companies.

In addition to writing, I also host webinars and workshops, where I give presentations and share my knowledge with a wider audience. I also write for top financial journals and show up as a guest analyst on financial news shows. I like to travel, spend time with my family, and keep active by playing different sports when I'm not buried in market research.

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