Invalda group implements new operating strategy: group’s activity will be orientated to asset management also private and investment banking

Today Invalda announced that the Board of the Company approved the new group’s operating strategy to concentrate group’s activity on two fields: asset management also private and investment banking.

Following the new strategy, Invalda, real estate and investment management companies of Invalda group will integrate their experience and pursue common goals. Functions, ensuring monitoring, the search of new opportunities, risk management and other competencies, fundamental to asset management, will be centralised. Gradually the rearranged structure will intercept management of all trusted assets, including management of Invalda’s group companies.

“Invalda even previously operated as a private equity fund, which raised external funds in many deals. While the group enlarging and actively expanding in Central and Eastern Europe it is time to rearrange the structure corresponding to the best international practice”, – the president of Invalda Darius Sulnis said.

Subsequent to the reformation, Invalda’s, real estate development company’s Inred and investment management company’s Finasta Investiciju Valdymas employees’ competence will be incorporated.

“The goal to develop successfully group’s activity focusing on long term constant growth still remains. We plan to establish new private equity and real estate funds in the nearest future”, – D. Sulnis emphasized.

On the basis of the new structure, improved accounting, net asset valuation and information disclosure standards will be implemented. 

In today’s conference the Company presented information about group’s Net Assets Value (NAV*), calculated according to the newest data, and assumptions of the calculations. The Net Asset Value calculation method will be used to determine value of the group in the future as well.

“We consider that the net asset value is one of major indicators, essential seeking to disclose the fair value of the Company”, – D. Sulnis said.

By the opinion of the Company’s management, the net asset value amounts to 620-911 mLTL, this is approximately 14.3-21.6 LTL per share. Compared with calculations made in autumn 2007, values of Invalda’s finance and real estate sectors decreased. The decline of finance sector companies’ value is influenced by the global fall in the securities markets, which also affected the Baltic region. Meanwhile the upper margin of the value of the real estate sector was reduced considering more conservative valuation of the market situation and the new method of value calculation used for the first time**.   

* NAV (Net Asset Value) is determined by deducting liabilities from the asset value.

** While assessing group’s real estate sector, the management of Invalda followed the recommendation of European public real estate association.