Silvano Fashion Group sells Lithuanian subsidiary
18.11.2009, 12:54
Silvano Fashion Group has entered into a share purchase agreement for the sale of all shares of UAB Linret LT.
The company said in a stock exchange statement that Linret LT is a Lithuanian retail subsidiary, operating 14 retail outlets. The closing of the transaction will take place within the month of November.
Linret LT is engaged primarily in the distribution of Lauma Lingerie and Milavitsa goods in Lithuania through retail chain under “Amadea Line” brand and also operates franchised stores under “Jockey” and “Yamamay” brands.
Linret LT made a loss of ca EUR 499 thousand (EEK 7.8 million) in the first nine months of 2009. Taking into account the decrease in consumer demand on in Lithuania, and the overall state of the Lithuanian economy (an estimated 18.1% fall in GDP for 2009), the Management Board believes that it is unlikely that Linret LT will become profitable in 2010 or will generate positive cash flows in the observable future.
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Taking into account the total investment of SFG in Linret LT, the transaction is estimated to generate an accounting loss of approximately 6.3 million kroons.