Regarding the decision of the Supervision Service of the Bank of Lithuania


AUGA group, AB received Decision No. 241-59 of 3 April 2017 of the Supervision Service of the Bank of Lithuania, under which:

1. The Supervision Service of the Bank of Lithuania imposed a penalty of EUR 14,000 (fourteen thousand) on AUGA group, AB, for the failure to comply with the mandatory instruction of the Bank of Lithuania to re-evaluate 100% block of shares of UAB eTime Invest, which was used as the payment for a part of the authorised capital of AUGA group, AB, and if it would established that the shares of AUGA group, AB, are not fully paid up, to ensure that this situation is rectified retrospectively according to the requirements of the law by and before 1 March 2017.

2. To obligate AUGA group, AB, to ensure that no later than before 1 October, 2017 the fair value of 100% block of shares of UAB eTime Invest, which was used as the payment for a part of the authorised capital of AUGA group, AB, is re-evaluated in compliance with the provisions of the Law on Companies and the Law on the Bases of Property and Business Valuation, with due consideration to the significant circumstances existing prior to the date of using the shares of UAB eTime Invest as the payment for the shares of AUGA group, AB, so that the fair value of UAB eTime Invest complies with the requirements of IFRS 3. Should it be established that the shares of AUGA group, AB, are not fully paid up, to ensure that this situation is rectified retrospectively according to the requirements of the law.

 

At the same time AUGA group, AB notes that:

- AUGA group, AB disagrees with certain aspects of the decision of 15 February 2016 of the Supervision Service of the Bank of Lithuania and, therefore, contests the said decision, which obligates it to re-evaluate the fair value of 100% block of shares of UAB eTime Invest and, should it be established that the said shares are not fully paid up, to rectify the situation according to the requirements of the law, at a competent court.

In spite of the pending litigation, AUGA group, AB is searching for opportunities to comply with decisions of the Supervision Service of the Bank of Lithuania to the extent such compliance is possible and in line with the AUGA group, AB position in the proceedings: on 28 February 2017, valuators agreed to repeatedly perform the evaluation of UAB eTime Invest. According to the agreement concluded with valuators, the report of the retrospective evaluation of the block of shares of UAB eTime Invest must be drawn up and submitted to AUGA group, AB within 90  working days from the date of the signature of the agreement.

 

To meet the criteria of transparency and access to information, where necessary, AUGA group, AB will inform about its subsequent actions to be taken in order to solve the situation.

 

 

 

         Member of the Board
         Agnė Jonaitytė
         +370 5 233 5340