AB Grigeo has transferred its corrugated cardboard production business to its 100 % owned subsidiary UAB Grigeo Packaging, located in Vilnius City municipality, Republic of Lithuania.
The company claims that considering the growing volume of the production and sales of corrugated cardboard, it has transferred the cardboard production business to ensure a more efficient management, further development and increased profitability.
AB Grigeo transferred business as a contribution other than in cash to UAB Grigeo Packaging on the basis of the share subscription agreement signed on the 2 January, 2019.
The company has executed the transfer of the business to its subsidiary by increasing its authorized capital and paying for the entire new issue of shares.
AB Grigeo has contributed the transfer of business by means other than cash i.e. as complex of assets, rights and obligations that makes the facility an autonomous economic unit, in exchange for new ordinary shares of UAB Grigeo Packaging.
The business valuation report issued by an independent property valuer showed the value of the transferred business as €15.2m.
On 31 October 2018, the audit committee of AB Grigeo has concluded that the transfer of the Business to UAB Grigeo Packaging on the basis of the share subscription agreement is fair and reasoned as AB Grigeo and its shareholders are not a party to the transaction.
The place of the production activities of the business has not changed after the transfer of the business to the subsidiary.
AB Grigeo and UAB Grigeo Packaging continue their production activities at the same address as before the transfer of the business at Vilnius City municipality, Republic of Lithuania.
Following the transfer of the business, AB Grigeo said it would focus on the production of tissue paper products and UAB Grigeo Packaging will carry out corrugated cardboard production activities.