Lithuania's largest builder Tiltra will be bought out by a Polish construction giant.
VILNIUS - Polish railway building company Trakcja Polska has announced that it will buy out the Tiltra Group, Lithuania's largest construction company.
Trakcja informed shareholders that it has signed a conditional agreement to buy a 100-percent stake in Tiltra, along with partial stakes in two of the firm's subsidiaries: 97 percent of AB Kauno Tiltai and 22 percent of Silentio.
The deal totals nearly 200 million euros. The transaction is expected to be completed at the end of the first quarter of next year.
"The price seems to be fair, although Trakcja isn’t just getting Tiltra for free,” Erste Group Bank analyst AG Piotr Lopaciuk told Bloomberg.
Trakcja Chief Executive Officer Maciej Radziwill told journalists that the new company, Trakcja Tiltra, is aiming for annual sales of 760 million euros by 2012, compared with a combined 480 million euros today.