Lithuania says yes to Linas Agro Group takeover of KG Group

Today, AB Linas Agro Group received permission from the Competition Council of the Republic of Lithuania to implement the concentration by acquiring a controlling stake in AB Kauno Grūdai, AB Kaišiadorių Paukštynas and AB Vilniaus Paukštynas and related companies. The transaction is planned to be completed in July, when the parties have fulfilled the terms of the share purchase agreement signed at the beginning of October last year.

Upon successful completion of the transaction, AB Linas Agro Group will acquire 34 companies operating in the three Baltic States, Russia, Belarus, Poland and other countries.

“Following this acquisition, Linas Agro Group will become a vertically integrated food and agricultural business group, providing products ‘from the field to the table’ and creating greater added value for customers in all areas of activity,” notes Mažvydas Šileika, Finance Director of AB Linas Agro Group.

To finance the transaction, the syndicated loan will be provided to AB Linas Agro Group by three banks: Luminor, Swedbank and SEB Bank.

According to M. Šileika, around one third of the transaction amount will be financed from own funds, and the syndicated loan provided by the banks will account for 70 percent of the value of the transaction.

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