TEO LT : Telia Lietuva optimises its assets and holds the real estate auctions

Telia Lietuva, AB
Notification on material event

Telia Lietuva optimises its assets and holds the real estate auctions

This year Telia Lietuva will put premises and buildings, a total of 52 properties throughout Lithuania, on the market during the public auctions. The total area of premises on sale is around 22,000 square metres, while the initial value of the portfolio of assets on sale amounts to EUR 11 million. The auctions will be conducted by the international real estate consultancy company Newsec.

The first action will be held on 9 August 2017. The initial prices of premises and buildings sold by Telia Lietuva range from EUR 250 to EUR 3 million. The highest initial price was set for administrative premises located in Vilnius at Vytenio str. 18, T. Ševčenkos str. 25 and Muitinės str. 35, while those premises will be auctioned later. The highest valued assets of the first auction are a separate building in Laisvės Av. in Kaunas and a rest house at the center of Palanga. However, during auctions, the buyers will be able to purchase assets not only in the largest cities of Lithuania, but also in remote locations, where analogue telephony stations used to operate.

'Technological progress and effective asset management allows reducing the need for premises and buildings by selling some of them. This will allow us to optimise the operating costs and to invest the received proceeds into the main activity of the Company: the development of network, IT and telecommunications services,' says Laimonas Devyžis, CFO of Telia Lietuva.

During auctions, unused administrative and utility premises will be offered for sale, so in some cases, Telia Lietuva will remain a co-owner of the assets alongside the buyer after purchase and sale transactions are completed.

Buyers may purchase some of the premises on sale before the auction, for a price that is 10 per cent higher than the initial price.

Darius Džiaugys,
Head of Investor Relations,
tel. [phone]