Planned changes in the structure of Grigeo AB group of companies
November 27 2023 - 8:01AM
Planned changes in the structure of Grigeo AB group of companies
On 27th November 2023 the Board of Grigeo AB
(hereinafter - the Company), to ensure more efficient management
and development of the businesses of Grigeo AB group of companies
(hereinafter - the Group), adopted a decision on changing the
structure of the Group.
The structural changes are planned to divide the
Group’s activities more clearly into business segments, separating
and forming the hygiene paper segment next to the existing
packaging and wood fibre board segments.
The Company plans to transfer its current tissue
paper business, as a complex of assets, rights and liabilities, to
its newly established and 100 percent owned subsidiary, and
combining its management with the management of the factory to be
acquired in Poland (plans for the latter acquisition were announced
on 26th September 2023).
The value of the tissue paper business to be
transferred to the subsidiary will be determined in a business
valuation report by an independent asset valuer. It is planned that
changes in the Group's structure will be implemented in the first
half of 2024. After the transfer of the business, the production of
tissue paper in Lithuania will continue to be carried out at the
same address as before the transfer of the business – Vilniaus
street 10, Grigiškės, Vilnius city municipality, Republic of
Lithuania.
The structural changes of the Group will not
affect the continuity of work, length of service, accrued vacation
days or any other available benefits of the Company's
employees.
The changes in the structure of the Group will
be implemented in accordance with the requirements of the legal
acts of the Republic of Lithuania, after receiving the necessary
permits and/or consents from the relevant state and local municipal
institutions, after receiving the opinion of the Company's Audit
Committee and the consent of the Supervisory Board regarding the
conclusion of the transaction with the related party, in
cooperation with the Company's partners and after consultations
with the trade union operating at the Company level.
After implementing the changes to the structure
of the Group, the Company would retain centralized supervision and
control of the Group's financial accounting and business analytics,
personnel management, legal services, information technology
maintenance, procurement and in other functions that the Group’s
companies are serviced.
The Board of the Company believes that the
separation of the Group's activities, including the concentration
of the Company's current tissue paper production business in a
separate company, will ensure greater clarity and efficiency of the
Group's business management and strengthen its position in the
market of tissue paper production in the Baltic countries and
Poland. In the short term, the changes in the structure of the
Group will not have a significant impact on the Group's financial
indicators, but in the opinion of the Board, in the medium and long
term, the separation of the segment and the merger of management
will bring economic benefits to the results of the Group.
The Group’s financial results for 9-month period
of 2023, including the results of business segments, were published
on 23rd November 2023.
The Group consists of Grigeo AB, Grigeo
Packaging UAB, Grigeo Baltwood UAB, Grigeo Klaipėda AB, Mena Pak
AT, Grigeo Recycling UAB, Grigeo Recycling SIA and Grigeo
investicijų valdymas UAB.
Tomas Jozonis
Chief Executive Officer
+370 5 243 58 01
Grigeo Ab (LSE:0IXQ)
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