The split-off of Invalda LT, AB, one of the major Lithuanian investment companies, is completed. Three newly established companies INVL Baltic Farmland, INVL Baltic Real Estate and INVL Technology operate in the market. Shares of the newly established companies are planned to be quoted on the NASDAQ OMX Vilnius Exchange in May.
These new companies were registered in the Centre of Registers on Tuesday, 29 April 2014.
Business model of Invalda LT, AB is redesigned according to classical asset management principles. Invalda LT, AB will seek to receive the main income from the management activity and to become one of the leading asset management companies in the region.
INVL Baltic 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 into information technology companies, will apply for closed-end investment company licenses and will be similar to closed-end funds.
“We expect that the reorganization will be beneficial for all 3.9 thousand shareholders of Invalda LT and new investors of the company, since they will be able to select the risk level as well as the term of the investments. We believe that the split – off of homogenous assets to the separate companies will allow seeing real asset value.” – Darius Sulnis, the president of Invalda LT, said.
17 companies investing into agricultural land and loans granted to them were 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 34.3 million.
Invaldos Nekilnojamojo Turto Fondas and Rovelija, loans granted to the company Rovelija and assets in Latvia related to the real estate logistics project were transferred to INVL Baltic Real Estate. Consolidated equity of INVL Baltic Real Estate, would amount to LTL 44.2 million, assets – LTL 150.6 million, as of the end of 2013.
80 percent of BAIP Group shares were transferred to INVL Technology. As it was announced earlier, unaudited revenues of BAIP Group increased by 25% in 2013 and reached LTL 50.7 million. Meanwhile EBITDA (earnings before interest, taxes, depreciation and amortization) increased by 63 percent and reached LTL 4.4 million.
Alvydas Banys, Indre Miseikyte and D. Sulnis, current Members of the Board of Invalda LT, AB, were elected to the Boards of the three newly established companies. D. Sulnis was appointed to hold a position of the manager of those companies. “Composition of the management of the newly established companies is identical to Invalda LT only for the transitional period – until the companies will become closed-end investment companies. Their management later will be passed to the qualified professionals of Invalda LT Investments, a company owned by Invalda LT”, – Darius Sulnis, the president of Invalda LT, said.
Shareholders of Invalda LT will proportionally participate in the capital of the new companies. It is calculated that the shareholder of Invalda LT, AB 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.
All newly established companies will apply for Lietuvos Bankas, regarding listing in the NASDAQ OMX Vilnius stock exchange. As it was announced earlier, the split – off is carried out according to book values, not market values, therefore the market will have to set shares’ prices of the new companies. Asset valuations in the real estate and agricultural land companies are fulfilled and INVL Technology could be estimated according to the cash flow method.
The authorised capital of Invalda LT, AB after the split – off amounts 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. Presentations of the companies will be published until they start listing.