The shareholders of Invalda LT, one of the major investments companies in Lithuania, on 28th of April will vote on approval of split-off terms. According to the terms, companies, similar to closed-end funds INVL Baltic Farmland, INVL Baltic Real Estate and INVL Technology, will be spun-off from Invalda LT.
“We expect that shareholders will approve the proposed business model, redesigned according to the classical asset management principles. We think that this reorganisation is beneficial for investors – they will be able to select the risk level as well as the term of the investments. All companies will be listed on the NASDAQ OMX Vilnius stock exchange”, – Darius Sulnis, the president of Invalda LT, commented.
INVL Farmland, which is going to invest into agricultural land, INVL Baltic Real Estate, which will invest into real estate and INVL Technology, which will invest info information technology companies, will later apply for closed-end investment company licenses.
Alvydas Banys, Indre Miseikyte and Darius Sulnis, the Board members of Invalda LT, are proposed to be elected to the Boards of 3 new companies. When these companies have closed-end investment company licenses, they should be managed by Invalda LT Investments.
In the beginning of their activities, new companies will have about 3.9 thousand shareholders, the same amount as Invalda LT presently has. It is planned to raise additional capital for new investments later in companies’ activities, therefore shareholders’ structure may change and the liquidity of shares may increase.
New companies will have 48% of Invalda LT assets, calculated in book values.
17 companies, investing into agricultural land, and loans granted to them should be transferred to INVL Baltic Farmland. Presently 17 companies altogether own about 3 thousand hectare of land, the consolidated equity at the end of 2013 amounted to LTL 34.4 million.
INVL Baltic Real Estate will incorporate Invaldos Nekilnojamojo Turto Fondas and Rovelija, real estate companies of Invalda LT, loans granted to the company Rovelija and assets in Latvia related to the real estate logistics project. Consolidated equity of INVL Baltic Real Estate would amount to LTL 44.3 million, assets – LTL 150.2 million, as of the end of 2013.
80 percent of BAIP Group shares should be transferred to INVL Technology. As it was announced earlier, unaudited revenues of BAIP Group increased by 25% in 2013 and reached LTL 50.3 million. Meanwhile, EBITDA (earnings before interest, taxes, depreciation and amortization) increased by 63% and reached LTL 4.4 million.
Invalda LT will own stakes in Vilniaus Baldai, Litagra, facilities management group Inservis, Kelio Zenklai and other financial assets.
Shareholders of Invalda LT will have proportionate stakes in the capital of the new companies. 52.05 % of assets, equity and liabilities (calculated in book values) will stay in Invalda LT, 14.45% will be transferred to INVL Baltic Farmland, 30.9 % to INVL Baltic Real Estate and 2.6 % to INVL Technology. The standalone assets of Invalda LT accounted to LTL 174.9 million in 2013, equity – LTL 160.3 million.
It is estimated that the shareholder of Invalda LT owning 1000 shares after the split – off will own 520 shares of Invalda LT, 145 shares of INVL Baltic Farmland, 309 shares of INVL Baltic Real Estate and 26 shares of INVL Technology.
The split – off is carried out according to book, not market values, therefore share prices of the new companies will have to be set by the market. Asset valuations of the real estate and agricultural land companies have been performed and INVL Technology shall be evaluated according to the cash flow method.
The authorised capital of Invalda LT after the split – off will amount to LTL 11.866 million, INVL Baltic Real Estate – LTL 7.044 million, INVL Baltic Farmland – LTL 3.294 million and INVL Technology – LTL 592.7 thousand.