Lithuania-based sanitary-household paper company AB Grigeo has entered a share subscription agreement to divest a part of its corrugated cardboard production business to its 100%-owned subsidiary UAB Grigeo Packaging.
The company’s audit committee has approved the transaction proposal, which was submitted by the AB Grigeo president Gintautas Pangonis on 26 October.
The committee opined that the transaction on the basis of the agreement and the Business Acceptance-Transfer Act in exchange for the newly issued shares of UAB Grigeo Packaging is fair and reasoned.
The board of AB Grigeo has made this decision to meet the growing volume of production and sales of corrugated cardboard. It will also allow the efficient management and development of the business.
The business transfer process will be implemented by increasing UAB Grigeo Packaging’s authorised capital. The transaction is expected to close on 2 January.
Following the completion of the transaction, both companies will continue their operations from Grigiškės, Vilnius City, the Republic of Lithuania, with AB Grigeo focusing on the production of tissue paper products and UAB on corrugated cardboard production.
Based in Lithuania, the group currently serves Baltic countries through various companies such as Grigeo, AB, Grigeo Klaipėda, AB, Grigeo Baltwood, UAB, Grigeo Recycling, UAB, and Mena Pak, PAT.
The company produces products across various categories, including hygienic papers such as napkins, tissues, paper towels, toilet and cleaning paper, containerboard products, and corrugated cardboard and packaging.