OREANDA-NEWS. November 08, 2011. Litagra, one of the largest companies operating in the agricultural sector of the Baltic countries, will raise financing of 37.1 m LTL for its business expansion. The appropriate amount will be invested by Invalda Group into new share issue of Litagra, while for the remaining 1.5 m LTL shares of Litagra from the current shareholders will be acquired. Invalda Group will own 36.9% stake in Litagra UAB after the transactions.

Agreements regarding the above mentioned investments were signed on November 7. The transactions should be closed when the permission of the Competition Council is received.

“The new financing attracted will enable us both to strengthen the bilty to provide full-scope services to farmers and grain trade, as well as a further expantion of production of primary agricultural products - grains and milk. The investment will certainly be beneficial for both our customers and employees and all suppliers and partners”, - said Mr. Gintaras Kateiva, the founder and Chairman of the Board of Litagra.

According to Mr. Gintaras Kateiva, financing attracted will strenghten the company's working capital and will enable to grow both organically and through acquisitions. "The use of investor's experience and knowledge (know-how) expanding the business internationally will not be of less importantance. We hope that after few years the grown company will be of significantly higher value, "- said Mr Kateiva.

The enterprise value of Litagra has been estimated at about 200 mLTL before the acquisition of new share issue by Cedus Invest, the company 100% owned by Invalda. Mr. Gintaras Kateiva will own 37% of Litagra shares, Invalda AB – 36.9%, investment fund Amber Trust II – 18%, Mr. Dziugas Grigaliunas and Mr. Adomas Grigaitis, managers of Litagra Group, - 6.4% and 1.7% respectively.

„We have appreciate professional and personal qualities of Litagra shareholders and managers and we look forward to the successful cooperation”, - said Mr. Darius Sulnis, the president of Invalda.

Mr. Darius Sulnis noted that the perspectives of the agricultural business in Lithuania are good. "We think that long-lived traditions and the right conditions for farming allow the best companies in the Lithuanian agricultural sector to be successful and competitive in the global context. We believe that Invalda with its new investments and its team experience, ambitions and ideas will strengthen the position of Litagra as one of the leaders in the region and will create value to farmers, other partners, employees and investors ", - said D. Sulnis.

According to Mr. Martynas Cesnavicius, the advisor of the investment fund Amber Trust II, a partnership with Invalda is not the first for this investment fund. We have earned good moneyin Sanitas, where the investment of Amber Trust assisted the company to acquire the Polish company Jelfa. Associated to Amber Trust other investment funds also have invested into shares of Vilniaus Baldai. Now newly invested funds will assist Litagra to expend, and we hope to repeat the success story "- said M.Cesnavicius, the board member of Litagra.

It was agreed that the representatives of Invalda would actively participate in the Board of Litagra together with the existing shareholders.

The companies of Litagra Group are engaged in the primary crop and livestock (milk) production, grain processing and agricultural services. Group companies trade in plant protection products, fertilizers, seeds, compound feed, feed supplements, veterinary products. Moreover, companies buy grain, provide drying of grain and other raw materials, cleaning, loading and storage services. Group companies provide agricultural services in Lithuania, Latvia and Estonia.

The largest companies of Litagra group are Litagros Prekyba (with a branch Litagra Latvia), Litagros Grudai UAB, Litagra OU in Estonia, Joniskio Grudai AB, Taurages Grudai AB, Marijampoles Grudai AB, Kedainiu Grudai AB, Aristava and Berzai agricultural companies in Kedainiai district, agricultural company Bausai, Kalpokai agricultural company, Sesupe agricultural company, Slapaberze agricultural company, Ranktineliai agricultural company and others.

During the three quarters of 2011 the consolidated turnover of Litagra Group was 271.7 mLTL, i.e. 17.5% higher than during the same period of the last year (231.3 mLTL). EBITDA of Litagra Group during the comparative period has increased by 19% - from 16.3 mLTL to 19.4 mLTL.

About Invalda AB
Invalda AB, established in 1992, is the investment company whose primary objective - focusing on long-term stable growth, successful development of activities and assuring financial returns to shareholders. The largest part of Invalda Group activities are performed in Poland and Lithuania.
Shares of Invalda have been listed since December 19, 1995 (then the National Stock Exchange of Vilnius, Lithuania). From the January 1, 2008 the company’s shares have been on the Main List of NASDAQ OMX Vilnius stock exchange.

About Litagra UAB
Litagra Group consists of Litagra UAB and its subsidiaries. The activities of Litagra Group include providing services for agriculture related business, grain processing and elevators services, production of primary crop and livestock agricultural production, investments in the agricultural sector.