AB Pieno žvaigždės has signed an agreement to sell a part of the assets of its plant in Pasvalys for making semi-finished cheese products

AB Pieno žvaigždės
Notice of a material event

AB Pieno žvaigždės has signed an agreement to sell a part of the assets of its plant in Pasvalys for making semi-finished cheese products

AB Pieno žvaigždės (the “Company”) has signed the Assets Sale and Purchase Agreement (the “Agreement”) with AB Rokiškio sūris and its subsidiary UAB RS IT (the “Buyer”) concerning the sale of a part of the semi-finished cheese products making facilities and associated infrastructure of the Company’s branch Pasvalio sūrinė, including buildings, land plots, equipment and engineering networks, situated at Mūšos str. 14, Pasvalys, Mūšos str. 12C, 12D, 12E, 12F, Pasvalys (the “Assets”), to the Buyer.

Together with the Assets, the Buyer will take over the employment relationships with the employees associated with the Assets, which will be transferred to the Buyer in accordance with the procedure laid down by law, thereby ensuring that the employees can continue working at the same workplace.

The Transaction does not involve the transfer of the equipment, buildings, and associated infrastructure located at Mūšos str. 2C, Pasvalys, which are required for the cheese ripening (maturing) and packaging operations of the Company's Pasvalio sūrinė branch; such assets shall remain the property of the Company, thereby ensuring the uninterrupted production of cheese and its supply to the market. The assets sold under the Agreement do not include the Company's trademarks, other intellectual property rights, or active agreements with suppliers and buyers. These rights and agreements shall not be transferred to the Buyer.

In addition, alongside the Assets Sale and Purchase Agreement, the Buyer and AB Rokiškio sūris and its subsidiary entered into agreements for provision of services by the Buyer to the Company in connection with the production of semi-finished cheese products after the closing of the transaction.

The Transaction will be closed once the conditions set out in the Agreement are fulfilled, the main one being obtaining a concentration permit from the Competition Council of the Republic of Lithuania if such a permit is required. As completion of the transaction remains subject to the satisfaction of conditions precedent, the transaction value will be disclosed following completion.

The Company will issue a separate notice about the closing.

Danutė Kairevičienė
CFO

+370 5 246 1414