Legislation, Lithuania, Real Estate

The activity of the Company was transferred according to the decision of the Board of the Company, adopted on 29 December 2011, that the Company activity shall be holding enterprise – public company which controls facility management, maintenance, waste management companies in Lithuania and in other countries, reports LETA/ELTA.

Continuing the implementation, on the second stage the subsidiaries which are registered in Lithuania and manage residential facility in Lithuania and perform other activities related with the residential facility management shall be transferred to City Service LT Ltd. direct control. The first stage ended on 31 January 2012 when the Company and 100 percent controlled subsidiary of the Company City Service LT Ltd. concluded share subscription agreement and assets, rights and obligations deed, on the basis of the JSCove mentioned the Company's commercial real estate management and maintenance activities (including rights and obligations related to the mentioned activities) as assets complex was transferred to City Service LT Ltd.

Accordingly under share subscription agreement the Company paid up all new issued City Service LT Ltd. shares and the Company shall obtain and control 100% of City Service LT Ltd. shares after the registration of the new emission in the enterprises register.