Latvian capital company allowed to acquire Baltic Champs from Auga group

The Competition Council has allowed the Latvian company „Global Champs“, owned by the Latvian capital Mhitaryjanai family, to acquire the mushroom business „Baltic Champs“ from the financially troubled „Auga Group“, one of the largest organic food producers in the Baltic States, which is undergoing restructuring.

As announced by the Council, „Global Champs“ is seeking to acquire 100 percent of the shares.

„The proposed concentration will not lead to the creation or strengthening of a dominant position or to a significant impediment of competition in the relevant markets“, – said the Council in its notification.

As BNS reported, the companies signed a preliminary agreement on the transaction in December last year.

At the time, „Auga group“ said that the transaction would not only reduce its financial liabilities by almost EUR 5 million, but also cover accrued and unpaid interest. The final price of the sale is not yet known.

According to the restructuring plan approved by the court, the majority of the proceeds from the sale of „Baltic Champs“ shares will be used to redeem private placement bonds issued by „Auga group“'s subsidiary management company „AWG investment 1“, which have an aggregate nominal value of €4.9 million. 100% of the shares of „Baltic Champs“ are pledged as collateral for the bonds.

It has been announced that the sale price of the shares will be calculated on the basis of a formula set out in the agreement, in line with the company's restructuring plan. The formula price for „Baltic Champs“ shares will be higher than the amount needed to fully redeem the bonds and pay interest to their holders.

As BNS reported, after „Auga Group“'s shareholders and creditors approved the company's restructuring plan in August last year, it was approved by the Vilnius Regional Court on 2 September.

By the end of 2029, „Auga Group“ expects to have fully settled its financial obligations, reducing its debt from EUR 83.4 million to zero.