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International Internet Magazine. Baltic States news & analytics Wednesday, 01.04.2020, 14:50

Lithuania's Rakauskas investors to split business

BC, Vilnius, 21.05.2019.Print version
Lithuanian investors Augustinas Rakauskas and his son Arturas Rakauskas are changing their business's existing management model and will continue developing their businesses separately, informed LETA/BNS.

The two investors have turned to Lithuania's Competition Council for permission to carry out a mutual transaction of undisclosed value.

Having led Kesko Senukai, a group of companies running the largest retail chain of DIY, house building, home repairing and improvement stores in the Baltics, for the past 18, Arturas Rakauskas will double his existing stake in the group to 50%, with the remaining shares remaining in the hands of Kesko Senukai's strategic partner, Finland's Kesko.

The Kesko Senukai group also includes an e-trade company, Kesko Senukai Digital.

Meanwhile, after the transaction, Augustinas Rakauskas, the Senukai group's founder, will own 100% in real estate companies Baltic RED and Baltic Shopping Centers. These companies operate Mega and Banginis shopping malls and other real estate assets, and also lease premises to Kesko Senukai stores and other trade businesses.

Kesko Senukai posted 631.857 mln euros in consolidated sales revenue in 2017, up 12.9% from 2016, and its net profits plummeted 2.6 times to 8.64 mln euros.

Baltic Shopping Centers earned 21.025 mln euros in revenue last year up 1.9% y-o-y, and posted a new profit of 12.736 mln euros, down 31.8%.

Baltic RED's sales revenue dropped 7.7% to 2.299 mln euros, and its net profits rose 8.2% to 665,400 euros.

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