Agrowill Group to go on Warsaw Stock Exchange

The Board of Agrowill Group AB (hereinafter – Company), one of the largest groups controlling agricultural companies in the Baltics, has taken a decision to appeal to the Warsaw Stock Exchange for obtaining a listing in the immediate future.
The Lithuanian Company intends to issue up to 35,000,000 new shares in Poland to attract LTL 55 mln. to LTL 80 mln. worth of capital. 
This year, Agrowill Group has already operated at a profit, with earnings constituting LTL 0.347 mln. for the first eight months. The turnover and EBITDA of the Company for the same period were LTL 27.042 mln. and LTL 11.694 mln., respectively.
According to Vladas Bagavičius, chairman of the Board, the intent for obtaining a listing on the Warsaw Stock Exchange is the Company’s consistent step towards development where they seek to benefit from the advantages of the largest stock exchange in this region. The listing of the Company’s shares on both the Warsaw and Vilnius Stock Exchanges would create value added for the shareholders by ensuring higher liquidity and capitalisation level.
“The additional funds we attract will be used for enlarging the volume of operations. The strategic plans of the Company provide for a double increase in the cow herd through the acquisition of another 3,000 cows. The existing production capacity of the Company allows enlarging the cow herd without any significant investment using the infrastructure in place. The enlargement of the cow herd in the existing production units will reduce the cost of raw milk production. Moreover, the Company is aimed at increasing the land area owned by 20% to 25% as it rents land in the vicinity of its agricultural subsidiaries. The acquisition of new agricultural companies is not among Agrowill’s plans, but the company has not abandoned the previously declared objective to sell land that is not farmed by the group itself and expects it will take place in 2011-2012”, said Mr. Bagavičius, commenting on the plans. 
Mr. Bagavičius has stressed that the Company is also changing its principles of business development. Future development will involve the increase of the rented land area and the efficiency of existing companies, as well as the improvement of business operations and workers’ qualifications rather than the acquisition of new agricultural businesses.  
According to him, Agrowill Group, as one of the largest agribusinesses in the Baltic region, is ready to purchase fertilisers and other materials directly from producers, this way avoiding intermediaries and lowering the cost of fertilisers.
The chairman of Agrowill Group does not rule out the possibility of overcoming the consequences of the recent crisis earlier than expected thanks to the processes under way: Agrowill Group’s restructuring may be completed earlier in case new funds are attracted effectively and appropriate arrangements are made with the creditors. 

About Agrowill Group
Established in 2003, Agrowill Group AB is a centrally managed company that is one of the largest enterprises engaged in the primary production of agricultural produce in Eastern Europe. The company is not only seeking to become the most modern establishment of its kind, but it is also aimed, using economies of scale, at achieving some of the European Union’s highest numbers in the milk amount per cow, the grain amount per hectare and motor hours per technical unit. All this is possible to achieve with proper planning of production, the use of the existing infrastructure and the service of external customers.
At present, Agrowill Group unites more than 40 companies that own and rent about 32,000 hectares of farmland, over 700 different machines, 250,000 sq. m of different buildings containing various production processes, and keep around 3,000 dairy cows.
The largest shareholders of Agrowill Group AB are Vretola Holdings Limited and Volemer Holdings Limited. The company’s shares are listed on the OMX Vilnius Stock Exchange.

More information:
Vladas Bagavičius, Chairman of the Board of Agrowill Group AB, tel.  +370-610-31807

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