The EBRD has agreed to sell its 25.7 per cent stake in Lithuanian dairy group Rokiskio Suris for LIT55 million to a consortium called UAB Survesta which includes the dairy company's current management team.
Another shareholder, the East European Food Fund, in which the EBRD is an investor, is also selling its 15.4 per cent in the company.
Rokiskio Suris is the largest listed dairy company in the Baltic States, producing cheese for the EU and US markets and fresh dairy products for the local market. Since the EBRD and East European Fund made their investments in 1999, Rokiskio Suris has undertaken a restructuring and modernisation process which has led to growth in revenues and an increase in company value.
Ahead of EU accession in May, the company has been instrumental in the consolidation of the local dairy sector to form larger-scale dairy companies that may compete more strongly in open markets.
Noreen Doyle, EBRD first vice president, said the Bank's decision to sell its stake in Rokiskio Suris was a reflection of the company's completion of objectives set by the Bank for its investment.
Speaking for the Lithuanian consortium, Antanas Trumpa, CEO of Rokiskio Suris, welcomed the agreement and expressed appreciation for the contribution to the company's success by the EBRD and the East European Food Fund. He confirmed that the consortium was making an open offer to all of the remaining shareholders at the same price, LIT45.1 per share, and said the company looked forward to continuing to develop its leading position in the market.