Lithuania-based sanitary-household paper company AB Grigeo has completed the previously announced transfer of corrugated cardboard production business to its wholly owned subsidiary UAB Grigeo Packaging.
In November, the company announced the transfer in a bid to support the growth of its corrugated cardboard production arm and enable swift management of the business.
The transfer was carried out by increasing the authorised capital of UAB Grigeo Packaging and paying the issued shares by AB Grigeo through a combination of assets, rights and obligations pertaining to the divested business, against new ordinary shares of UAB Grigeo Packaging.
Both the entities signed a share subscription agreement to transfer the corrugated cardboard production business to UAB Grigeo Packaging.
As a part of the deal, AB Grigeo will acquire all the newly issued UAB Grigeo Packaging shares after the Articles of Association of UAB Grigeo Packaging.
The value of the divested business is estimated to be €15.2m, according to an independent business valuation report.
In October last year, the audit committee of AB Grigeo opined that the transfer of the corrugated business to UAB Grigeo Packaging on the basis of the share subscription agreement is fair and reasonable.
AB Grigeo and UAB Grigeo Packaging will continue their production activities at the same location in Vilniaus, within the Vilnius City municipality of Lithuania.
The parent company will focus on the production of tissue paper products, while UAB Grigeo Packaging will carry out corrugated cardboard output.