European Bank acquires 8.7% stake in Lithuania’s Auga Group
Adesola Afolabi was a businessamlive reporter and Head of Financial desk.
The European Bank of Reconstruction and Development (EBRD) has acquired 8.7 percent stake in AB Auga Group, one of Europe’s largest organic agricultural producers.
EBRD acquired the stake by investing the sum of €9 million as part of a successful public equity offering, where Auga Group sold shares for a total amount of €36 million.
According to the firm, the new funds will be invested to unlock synergies across its farming activities and diversify its product range by expanding into poultry farms, building modern dairy farms, a combined feedstock production plant and a biogas production plant, as well as moving up into value-added production by increasing its packaged organic products.
Auga Group, established and operating in Lithuania, is among the largest organic farming companies in the European Union, ensuring full traceability of raw materials, with complete process control from field to shelf. The company is listed on the Vilnius and Warsaw stock exchanges.
The successful completion of the initial public offering and the EBRD participation will help finance investments in innovative green products and technologies as well as sustainable agricultural practices. The EBRD is a pioneer in green investment and in 2017 had already exceeded its 2020 investment goals under its Green Economy Transition approach.
The bank has been working in Lithuania since 1991 and to date has invested €790 million in some 85 projects. Capital market development, the green economy and strengthening local companies are the EBRD’s priorities in the country today.