FR&R Invest will acquire more than 84 % of Alita Group

The agreement with investment company of Swedbank Group will help to make Alita Group sustainable in the long-term by reducing the debt burden. Today, September 7th, the largest shareholder and Chairman of the board of Alita Group Vytautas Junevičius and Swedbank investment company FR&R Invest signed a restructuring agreement according to which FR&R Invest will acquire newly issued shares of Alita Group through conversion of Alita Group debt into equity. Thus, FR&R Invest will hold 84.4% of group’s shares and the financial liabilities of Alita Group will be reduced by more than 96 million litas after the deal will be closed. 14.5% of the shares of Alita Group will remain in the ownership of Vytautas Junevičius. An extraordinary general shareholders’ meeting is scheduled to take place in October 3 for the purpose of reducing the authorised capital of Alita Group to LTL 3,126 million thereby eliminating negative equity. Concurrently the meeting will decide on the increase of the authorised capital to LTL 20 million and authorising FR&R Invest to acquire all 16,874,000 newly issued shares. After closing the deal, a mandatory tender offer will be made by FR&R Invest regarding the remaining stocks of Alita Group listed in the NASDAQ OMX Vilnius stock exchange. "The agreement with FR&R Invest is the essential turning point during the most complicated period in the Alita Group history. It would be impossible to optimise group operations and adapt to very complicated market conditions with the current burden of financial liabilities. After this transaction the company will be able to take a breath, restore its cash flow and focus on business development opportunities and strengthening of its well-known brands in the market. I am ready to share my experience and knowledge with the new co-owner of the group", - said Vytautas Junevičius. As a result of transaction financial liabilities of Alita Group will be reduced by more than LTL 96 million. The remaining debt of the company to Swedbank will be restructured according to the new credit agreement, which will be signed while closing the deal between the Alita Group, FR&R Invest and Swedbank. "Alita is a well-known company with high-quality beverages, renowned brands and superior market shares. This agreement is an opportunity to stabilise the company", - said Vytautas Bučiūnas, Head of the Corporate Banking division at Swedbank in Lithuania. "We support the company in the pursuit to become sustainable again. After this restructuring Alita Group will have a healthier balance sheet and FR&R Invest intends to work in the best interests of the company to develop it further. The purpose of the restructuring is that Alita Group can continue normal operations and increase its profitability", - said Jan Åberg, Head of FR&R Invest. FR&R Invest, acting in accordance with the Lithuanian laws and regulations, before making the mandatory tender offer intends to apply to the Securities Commission with request that the price per share of Alita Group of official mandatory offer be established on the basis of the weighted average share price for the last 6 months until 7 September 2011. The Securities Commission will be requested to exclude from the calculation any increase in price that could have been a result of speculations not related to the performance of the business of Alita Group. During transaction FR&R Invest had been advised by law firm Tark Grunte Sutkiene, Alita Group advisors were LAWIN Lideika, Petrauskas, Valiūnas ir partneriai and JTC/Bridge Capital. Short overview of Alita Group: The beginning of Alita Group dates back to 1963 when in Alytus there was established a state winery. In 1995 the state enterprise ALITA was re-registered as a joint-stock company. Alita Group started its activity in October 2009. Alita Group has developed and implemented the quality control system in compliance with international quality requirements ISO 90002. The most popular brand of the company is the sparkling wine ALITA was recognized as the best Lithuanian sparkling wine in the category of sparkling wines in the Lithuanian Wine Championship 2010. Short overview of FRR Invest: FR&R Invest is an operating unit within Swedbank Group with special competence and the aim to participate in complicated restructurings and manage equity holdings. FR&R Invest has the objective to stabilize the borrower and recover highest possible value from distressed credits of Swedbank. FR&R Invest will take the owner’s responsibility in the Alita Group whereas Swedbank in Lithuania has the creditor’s rights and obligations.