VILNIUS, Aug. 29 (Xinhua) -- Rokiskio suris, Lithuania's largest dairy processing company announced Tuesday about preliminary investment agreement with New Zealand's major dairy company Fonterra amid efforts to expand Lithuania's dairy export.
According to an official announcement via Nasdaq Baltic stock exchange newswire, the management of Rokiskio suris has reached a preliminary agreement with Fonterra in regards with presumptive investment into Rokiskio suris' share capital.
Rokiskio suris, whose annual revenue stood at 226.2 million euros last year, plans to issue new share emission for Fonterra's investment.
"The amount of the new share emission is planned to be 10 percent of the Authorized Capital of AB Rokiskio suris," announced the company.
The price of the emission amounts to 7.1 million euro, or 1.98 euro per share.
The new share emission will be issued without giving a priority right to all shareholders to acquire shares of the emission, said the company.
"Fonterra is a leading global company, and by becoming a shareholder of Rokiskio suris it lifts our company to the very different, global level," Dalius Trumpa, chairman of the board of Rokiskio suris, told local media.
Trumpa said he would expect "very significant synergies" from cooperation with Fonterra in global dairy exports.
Finding global exports markets is key for Lithuanian dairy processing companies. Lithuanian dairy industry was hit hard by Russia's embargo on food imports from the European Union in 2014. Russia was one of the main exports markets to Lithuanian dairy producers. Since then, Lithuania dairy companies have been pursuing efforts to enter new markets.