LNR: Regarding signing of the agreement on sale of commercial part of business of wholesale electricity trade of “Lietuvos energijos gamyba”, AB
The part of business consists of the trade activities, which are not related to physical electricity trading, through financial derivatives and the provision of balancing services. The Company will continue earning income from electricity generated in its power plants and sold on the market as well as from the ancillary services provided to Transmission System Operator. No significant tangible assets that belong to the Company will be transferred to the buyer of business during the business sale transaction.
Energijos tiekimas will pay to the Company 13.1 million EUR in instalments until 31 March 2017. Another 8 million EUR (2 million EUR a year) can be paid as an earn-out provision depending on the results of the part of business to be sold over the next four years. Total final amount of transaction, subject to the implementation of any and all terms and conditions provided in the contract, can reach 21.1 million EUR.
Title of ownership of the part of business will pass to Energijos tiekimas on 1 January 2016. Up to this time, the Company will carry out the sold activities.
This agreement was concluded by implementing the value chain development program of Lietuvos Energija Group, including the leaning of the Company’s production activities through the separation of a part of commercial electricity wholesale trade activities performed by the Company.