Investment company Invalda informs that on Tuesday leading Lithuanian and Polish road and bridge construction group Tiltra Group and listed Polish railway infrastructure construction market leader Trakcja Polska completed a deal to merge their activities. The deal is worth 777,5 million PLN. This is the largest deal in Baltic states in 2011.
“With this deal a stage of expansion and value creation is finished – in five years a local company was transformed into a regional market leader and after a merger with Trakcja Polska it will be able to strive for even higher goals”, – said Darius Sulnis, the president of Invalda.
Invalda sold 44.8 per cent stake in Tiltra Group and 43.4 per cent stake in Kauno Tiltai AB for 314.1 mPLN and acquired 12.5 per cent stake in Trakcja Polska for 132.3 mPLN, Trakcja Polska bonds for 119.8 mPLN and got 62 mPLN in cash.
According to D. Sulnis, the stake in Trakcja Polska will allow Invalda to profit from growth and potential realization of the merged company Trakcja Tiltra.
“Cash and bonds part of the deal increase liquidity of Invalda and will allow us to execute new large projects – we will continue to explore new opportunities for a development”, – said D. Sulnis.
According to the agreement, proceedings paid to Invalda AB for shares in Tiltra Group AB and Kauno Tiltai AB might be reduced depending on the financial results of Tiltra Group. Also a liability of Invalda AB in respect of representations and warranties provided to Trakcja Polska is foreseen.
Preliminary positive result in consolidated financial statements of Invalda Group is approximately 152 mLTL, standalone company – about 199 mLTL.