Selling agreement of Invalda hotel business is completed

Investment company‘s Invalda owned four star hotel Holiday Inn Vilnius and economy class hotel Ecotel Vilnius selling agreement was signed this Thursday. After all parts properly executed specifications, stated in agreement signed on the 4th of January, 2008, 100 percent block of shares of the hotels operator Valmeda was transferred to the hotel division of the London based company the Triangle Group for the 68.5 million LTL (19.84 million EUR), enterprise value is 86.3 million LTL (25 million EUR).

The purchaser the Triangle Group has interests in energy, real estate and hotels sectors, operating it‘s business in Turkey, United Kingdom, Azerbaijan and East Europe regions.

Mr. Metin Guvener, cofounder of the Triangle Group, is most impressed with the Baltic region and in particular Lithuania which will prove to be a good investment opportunity especially with Vilnius being chosen as the European capital for 2009. “This is our first investment in the Baltic region which we hope will lead to other opportunities in the area.” – Mr. M.Guvener said.

“Although hotel business was successful and made bigger incomes every year, the conditions of selling agreement were adequate and profitable for Invalda “, – Invalda’s president Darius Sulnis said.

The hotel business, owned by Invalda, was created from zero by beginning the construction of Holiday Inn Vilnius hotel in 2000. Occupancy at the end of 2007 was 62.8 % at Holiday Inn Vilnius hotel, wherein number of rooms is 134, total area of buildings is 7.5 thousand sq.m., and 66.4 % at the Ecotel Vilnius, which was acquired by Valmeda in 2004, number of rooms – 168, total area – 4 thousand sq.m.

The strategy of Invalda is not only to create, buy, manage actively, but also to sell businesses or companies receiving the profitable opportunity. Leaving certain sectors allows to accumulate funds and attention to other projects and opportunities.

The selling agreement of Valmeda shares made a significant impact to the forecasts of 2008 activity result of Invalda group. Forecasted net profit of Invalda group in 2008, corrected according to completed selling agreement  of Valmeda shares reaches 127 million LTL (36.8 million EUR); part attributable to Invalda shareholders – 121.8 million LTL (35.3 million EUR). Earlier forecasts were 98.5 mLTL (28.5 million EUR) and 93.3 mLTL (27 million EUR) respectively.