Duke I S.à r.l acquires a controlling stake in VALMIERAS STIKLA ŠĶIEDRA, AS

18. February, 2021

AS VALMIERAS STIKLA ŠĶIEDRA informs that on February 18th, 2021, a deal has been concluded for the sale and purchase of 83.14% (eighty-three, decimal, fourteen percent) of the Company's share capital in accordance with the terms set forth in the Share Purchase Agreement concluded between the Company's controlling shareholder group, on the one hand, and Duke I S.à r.l (hereinafter – Duke), a Luxembourg limited liability company, on the other hand.

The Company has previously informed that Duke is a Luxembourg subsidiary of Warwick European Opportunities Fund III LP which is an Alternative Investment Fund managed by Warwick Capital Partners LLP (hereinafter –Warwick). Warwick is a London-based investment manager that focuses on European special situations and manages funds with aggregate assets under management (AUM) in excess of EUR 2 billion.

As a part of the transaction, 19 872 715 shares were sold for EUR 0.5483 per share.

The total Purchase price is EUR 10 896 209.63.

The further distribution of shareholders is as follows:
83.14% - Duke I S.à r.l.;
10.50 % - P-D Management Industries Technologies GmbH;
6.36 % - others.

“The Company and management welcome the new majority shareholder and thank Warwick Capital for its support. This step and the associated financial support give us the opportunity to further expand our business model and make necessary investments in the Company which have not been possible during the past years,” said Mr Stefan Jugel, VALMIERAS STIKLA ŠĶIEDRA, AS Chairman of the Board.

Ian Burgess, Co-founder of Warwick Capital Partners, said: “Warwick looks forward to supporting VALMIERAS STIKLA ŠĶIEDRA through its financial restructuring and next phase of growth. VALMIERAS STIKLA ŠĶIEDRA is one of the leading manufacturers in Europe of products based on glass fibre. We will look to consolidate this position and grow the product offering working in partnership with the management team and current shareholders of the Company.”

The transaction also includes the transfer of Danske Bank A/S claim against AS VALMIERAS STIKLA ŠĶIEDRA. With notice of the transaction, Duke becomes Company's second largest creditor with a total liability amount of EUR 45 568 799.35 for 5 years at an interest rate of 4.5% p.a.