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, Grigiškes, 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 Klaipeda AB, Mena Pak AT, Grigeo Recycling UAB, Grigeo Recycling SIA and Grigeo investiciju valdymas UAB.
Tomas Jozonis
Chief Executive Officer
+370 5 243 58 01
