OREANDA-NEWS. September 14, 2010. As part of further implementation of the plan on the reorganisation of the electrical energy sector, Lietuvos Energija AB will invest in the share capital of Technologiju ir Inovaciju Centras UAB, a competences and technologies company, Kruonio Investicijos UAB, an asset and transport management company, and Elektros Tinklo Prieziura UAB and TETAS UAB, network maintenance companies. Lietuvos Energija AB will pay in cash and in kind for the shares in these four companies. The Board resolved to approve the decision on 3 September and an extraordinary meeting of shareholders is to be held on 28 September for the ratification of the resolution.

According to the plan on the reorganisation of the electrical energy sector, an energy companies‘ servicing unit is to be formed in order to streamline the servicing operations in the sector. The unit will include two network servicing companies, a production servicing company, an asset management company which will be in charge of the non-production real estate and vehicles, and a technology and innovations company which will provide the competence development and knowledge dissemination and application services.

“This step of the reorganisation plan is very important in separating non-core operations and in developing a transparent and functionally clear structure of the electrical energy sector. Lietuvos Energija as a shareholder of the companies in the servicing unit can expect both the highest quality of service and the growth in the share value when the companies will be selling their services in a free market“, says Aloyzas Korizna, General Manager of Lietuvos Energija AB.

Investments of Lietuvos Energija AB in Technologiju ir Inovaciju Centras UAB  will consist of LTL 0.7 million and of 1,500,000 ordinary registered uncertificated shares in InterLinks UAB (100% of shares in the said company). According to independent asset valuators, market price for these shares is LTL 3,930,684. Furthermore, 18,478 ordinary registered uncertificated shares in Kruonio Investicijos UAB will be invested; the market price for these shares as determined by independent asset valuators is LTL 662,742. The remaining investments consist of non-current and current assets valued at LTL  18,823,959.58 by independent valuators.

Lietuvos Energija AB will receive, in exchange for its investments, 24,117,385  shares in Technologiju ir Inovaciju Centras, which accounts for at least 50% of all the issued  voting shares of Technologiju ir Inovaciju Centras UAB.

Lietuvos Energija AB will invest in Kruonio Investicijos UAB both non-current and current assets valued at LTL 130,376, 946.25 by independent asset valuators.

In exchange for the assets contributed to Kruonio Investicijos UAB, Lietuvos Energija UAB will acquire 1,303,769 ordinary registered shares of LTL 100 par value each in the said company. These shares will account for at least 41% of all the issued  voting shares in Kruonio Investicijos UAB.

Investments in Elektros Tinklo Paslaugos UAB will consist of funds (LTL 250,000) and both non-current and current assets the market price of which is LTL 4,486,601.95 as determined by an independent asset valuator. For its investments in Elektros Tinklo Paslaugos UAB, Lietuvos Energija UAB will receive 4,736,601 4 the said company, which will account for at least 28% of all issued voting shares in Elektros Tinklo Paslaugos UAB.

Lietuvos Energija AB will invest in TETAS UAB LTL 750,000; 430,400 ordinary registered uncertificated shares in Energetikos Pajegos UAB making up 100% of the share capital of this company and valued at LTL 5,006,443 by independent asset valuators, and non-current and current assets valued at LTL 2,570,989 by independent asset valuators. 

In exchange for its contribution in cash and in kind, Lietuvos Energija UAB will receive 3,469,762 ordinary registered shares of LTL 1 par value each in TETAS UAB, which will account for at least 61% of all issued voting shares of TETAS UAB.

The Board of Lietuvos Energija UAB has also resolved to invest both non-current and current assets the market value of which, as determined by independent asset valuators, is LTL 12,417,572.83, in Data Logistics Center UAB, a data transmission and storage company, whose shares are wholly owned by Lietuvos Energija UAB. These assets will be used by Lietuvos Energija AB to pay for the shares issued by Data Logistics Center while increasing its authorised capital. In exchange for its contribution, Lietuvos  Energija AB will receive 12,417,572   ordinary registered shares of LTL 1 par value each in Data Logistics Center UAB, which makes up 100% of the issued voting shares of Data Logistics Center UAB.

The Board has also resolved to transfer the entire shareholding of Lietuvos Energija AB in VsI Respublikinis Energetiku Mokymo Centras, a public entity, to Technologiju ir Inovaciju Centras UAB, for LTL 294,246.47 under a share sale-purchase agreement. 

Approval was also given for the resolution of the Board of 30 August 2010 to acquire ordinary registered shares in Lietuvos Elektrine AB from Visagino Atomine Elektrine UAB at the price determined by an independent valuator – 6,227,836 units.

The energy companies‘ servicing unit being formed by the method of division of functions is one of the four units to be established under the plan on the reorganisation of the electrical energy sector. The other units are intended for transmission, generation and distribution operations.

The aim of the reorganisation of the Lithuanian electrical energy sector is to increase the efficiency of the sector and to secure Lithuania‘s energy independence, with the sector‘s operating model complying with the provisions of the third legislative energy package of the European Union, enabling integration of the Lithuanian electrical energy system into the EU market and securing the funding of the strategic energy projects under implementation. It is estimated that the reorganisation will result in annual cost savings of approximately 10%, while companies in the sector, operating with greater efficiency, will create value added for the shareholders and will ensure stable prices for the customers.