Agrowill Group AB received a letter of the Supervision Service of the Bank of Lithuania forwarding a conclusion of the Property Oversight Agency regarding the compliance of the business valuation report prepared by UAB OBER-HAUS nekilnojamas turtas on the valuation of the shares in UAB eTime invest and applied valuation methods with the provisions of the Law on the Bases of Property and Business Valuation of the Republic of Lithuania (hereinafter referred to as Conclusion). The Property Valuation Oversight Agency provided a conclusion that the said Report did not comply with few provisions of the Law on the Bases of Property and Business Valuation of the Republic of Lithuania and Property and Business Valuation Methodology.
In its letter, the Supervision Service of the Bank of Lithuania advised the Company to issue a notification on the related material event, regardless that the situation with Conclusion is not finally settled yet. Taking this into account, the Company published a notification on a material event.
The Company reminds that its shareholder, Vretola Holdings Limited, during an increase in the authorised capital, subscribed to 14.151.252 new shares (with the total issue price of LTL 14.151.252) and paid for them by a 100% shareholding in UAB eTime invest, which is comprised of 6.856.500 ordinary registered shares at the par value of LTL 1.
Looking from the Company’s perspective, the real importance is behind the fact that 100% shareholding in UAB eTime invest has been evaluated LTL 16.7 million, which is LTL 2.55 million more than price of subscribed shares of the Company.
The Company also observes that:
1. In its Conclusion, the Property Valuation Oversight Agency did not specify whether the business valuation report valuates the shares in UAB eTime invest too high or too low. It is mentioned about few incompliancies of applied evaluation methotolody. It is likely that even after use of indicated evaluation methods the value of 100% shareholding in UAB eTime will remain materially unchanged or would be changed by not more than LTL 2.55 million.
2. In accordance with the Law on the Bases of Property and Business Valuation of the Republic of Lithuania and case-law, a conclusion of the Property Valuation Oversight Agency is not legally binding as long as a court has not ruled otherwise and should therefore be treated only as an opinion of the Property Valuation Oversight Agency. Whereas to the Company’s knowledge, UAB OBER-HAUS nekilnojamas turtas has challenged the conclusion of the Property Valuation Oversight Agency and the dispute has not been resolved in court.
Thus only after settlement of dispute it will be known whether the sum of the nominal values of the shares which are paid for by the contribution in kind of Vretola Holdings Limited should be valued additionally and, on reasonable grounds, adjusted.
Regardless of the above-mentioned aspects regarding the validity of the conclusion of the Property Valuation Oversight Agency, the Company has no grounds to doubt the competence and decisions of property valuator UAB OBER-HAUS nekilnojamas turtas.
According to the standards of transparency and information disclosure, the Company will inform on results of settlement of current situation and, on reasonable grounds, on taken actions.
Vladas Bagavičius
Member of the Board
+370 5 233 53 40