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Lithuania's property developer Hanner set to spin off part of its business

BC, Vilnius, 20.11.2015.Print version
Hanner, a leading Lithuanian property development group with operations in Lithuania, Ukraine, Russia, Latvia and Romania, plans to spin its cash flow generating projects off into a new company named Hanner RE in an effort to streamline its business, reports LETA/BNS.

Hanner Chairman Arvydas Avulis said that the aim was to make the group's structure clearer to investors, but he underlined that the company had no immediate plans to go public or sell a part of its business.

 

"We want to separate the operations that have the lowest risks and are the clearest and easiest to understand. These are projects that generate cash flows. One such project is the Europa business center (in Vilnius). It has a building, tenants and monthly lease payments. Basically, these are implemented projects that generate money," he told BNS.

 

According to Avulis, the new company, which will gradually take over all these projects, could be attractive to other investors in the future as well, but the group has no concrete plans to attract external funding by bringing in a strategic investor or institutional investors or to float its shares on a stock exchange.

 

He did not rule out selling one or several projects of Hanner RE if a good offer came in, but said that it was not a priority issue at the moment.

 

Hanner plans to complete the first stage of the separation of its operations in the first quarter of 2016.






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