ŽIA valda

ŽIA valda is a Lithuanian investment company and holding group established in 1997. Its approach has centered on identifying businesses with growth potential, creating or acquiring operating companies, consolidating fragmented sectors, and reorganizing businesses that require substantial development before they can attract wider private or institutional capital. Rather than operating as a narrowly focused fund manager, ŽIA valda has acted as an entrepreneurial investment platform with interests in aviation services, infrastructure, financial intermediation, agriculture, business services and real estate. The company became an investment holding company in 2002. That year it acquired Žvilgsnis iš arčiau, a Lithuanian and Baltic credit-management and debt-recovery business that was described as holding approximately 30% of its market. ŽIA valda later sold a controlling interest in that company to Creditinfo Group, an Icelandic-capital business operating in multiple countries. The transaction illustrates a recurring feature of ŽIA valda's model: develop an operating business, establish a stronger market position, and then realize value through a strategic or financial sale. Agriculture became another important area of activity. In 2003, ŽIA valda established Agrovaldymo grupė, later known as Agrowill Group. The agricultural platform was developed through the consolidation of producers and processors and eventually controlled 17 agricultural companies. In 2004, the group founded Žemės vystymo fondas, whose main activities included acquiring and leasing agricultural land. The land business supported the broader consolidation of farming assets and their lease to farmers and Agrowill Group companies. ŽIA valda also became involved in the restructuring and expansion of Lithuanian aviation infrastructure. In 2005, it participated in the privatization of Lithuanian Airlines. In 2006, the airline business was reorganized into three principal entities: flyLAL–Lithuanian Airlines, flyLAL Group Services, later known as Avia Solutions Group, and VA reals. The resulting structure brought together nine companies. ŽIA valda also pursued airport-related infrastructure in Vilnius, including aircraft-maintenance hangars, a private passenger terminal and office facilities. A proposed passenger-terminal project received strategic-importance recognition from the Lithuanian government in 2008, although the reference material does not establish that the terminal was completed. Real estate and construction formed a further part of the portfolio. During the middle of the 2000s, the company reported ownership of substantial premises and land in Vilnius, began the Gulbinai private-housing development and initiated the Kabantys sodai, or “Hanging Gardens,” project near central Vilnius. The Gulbinai project was sold in 2006. In 2007, ŽIA valda established Statinio interjeras for contracting, finishing and general construction work, and acquired the entire interest in Valstiečių laikraštis. The group also developed financial-services capabilities. Its subsidiary Finhill obtained a Category B broker licence in 2008, allowing it to provide specified finance-related services. In the same year, ŽIA valda launched a share issue valued at 48 million Lithuanian litas and attracted new shareholders, including SX Investments and Amber Capital Partners. The new ownership structure led to the formation of a board and the adoption of board operating rules. ŽIA valda's principal sources of income have been described as management fees, dividends and proceeds from selling parts of businesses. Its portfolio companies have also been prepared for external financing. Agrowill Group's 2008 listing on the Vilnius Stock Exchange was presented as ŽIA valda's first successful initial public offering; during its first three months, the share price reportedly rose by 30% while the OMX index fell by nearly 30%. The available reference material describes the group's assets net of loans, held directly and through affiliates and associated companies, as being worth nearly €120 million, but does not provide a date for that valuation. Current operating details, leadership, ownership and website information are not established by the supplied sources.

ŽIA valda was founded in Lithuania in 1997 and developed from an investment company into an investment holding group. Its stated method was to pursue projects with comparatively high profit potential by creating new business units, combining companies in the same sector, or acquiring businesses that required substantial reorganization. Once a business reached a sufficient level of development, the group sought to attract public or institutional capital through an initial public offering or private placement. A major strategic change occurred in 2002, when ŽIA valda formally became an investment holding company. It acquired Žvilgsnis iš arčiau, a Lithuanian and Baltic credit-management and debt-recovery enterprise. The business was subsequently developed and, in 2006, a controlling interest was sold to Creditinfo Group. This was one of the clearest examples of the group's build-and-exit investment cycle. The company expanded into agriculture in 2003 by establishing Agrovaldymo grupė, later called Agrowill Group. The platform consolidated agricultural producers and processors and was described as controlling 17 such companies. In 2004, ŽIA valda created Žemės vystymo fondas to acquire and lease agricultural land. The fund participated in the consolidation of farming land and leased land to farmers and Agrowill Group companies. In 2005, ŽIA valda entered the aviation sector through the privatization of Lithuanian Airlines. It later reorganized the aviation interests into flyLAL–Lithuanian Airlines, flyLAL Group Services and VA reals. The broader group comprised nine companies and included aviation services, real estate and infrastructure activities. ŽIA valda also developed infrastructure at Vilnius International Airport, including three aircraft-repair hangars, a private passenger terminal and office buildings. In 2008, the Lithuanian government's strategic committee recognized the planned flyLAL Group passenger terminal as strategically important to Lithuania and initiated the process for obtaining a construction permit. The supplied material does not confirm final completion. Real estate was another important component of the mid-2000s portfolio. The company reported ownership of approximately 30,000 square metres of premises and 27 hectares of land in Vilnius. It initiated a private-housing project in the Gulbinai settlement, covering more than 20 hectares, which was sold in 2006. It also began construction of the Kabantys sodai, or “Hanging Gardens,” project near central Vilnius. In 2007, the group acquired all of Valstiečių laikraštis and established Statinio interjeras for contracting, finishing and general construction work. The group added financial-services capacity through Finhill, which received a Category B broker licence in 2008. That year, ŽIA valda also launched a share issue valued at 48 million Lithuanian litas. The arrival of SX Investments and Amber Capital Partners as shareholders led to the creation of a board and the approval of board operating rules. Agrowill Group's stock-market listing on the Vilnius Stock Exchange was described as ŽIA valda's first successful IPO. The reference reports a 30% increase in Agrowill Group's share value during its first three months of trading while the OMX index declined by almost 30% over the same period. The group's income model has been described as relying mainly on management fees, dividends and proceeds from selling portions of businesses. Its portfolio has covered aviation services, infrastructure, agriculture, financial mediation, business services and real estate. The available account values assets net of loans held directly and through affiliated or associated companies at nearly €120 million, but gives no precise valuation date. Later leadership, ownership, financial performance and operating status are not documented in the supplied reference material.

• 2008

  Capital raising, brokerage licensing and agricultural IPO

  [1]ŽIA valdaen.wikipedia.org

  The company launches a share issue, gains new shareholders, receives a Category B broker licence through Finhill, and brings Agrowill Group to the Vilnius Stock Exchange.

• 2007

  Expansion into media and construction services

  [1]ŽIA valdaen.wikipedia.org

  ŽIA valda acquires Valstiečių laikraštis and establishes Statinio interjeras for construction and finishing work.

• 2006

  Credit-business disposal and aviation reorganization

  [1]ŽIA valdaen.wikipedia.org

  The group sells control of Žvilgsnis iš arčiau to Creditinfo Group and reorganizes the Lithuanian Airlines interests into three main companies.

• 2005

  Entry into aviation and real estate expansion

  [1]ŽIA valdaen.wikipedia.org

  ŽIA valda participates in the privatization of Lithuanian Airlines and advances housing, airport infrastructure and Vilnius real-estate projects.

• 2004

  Creation of Žemės vystymo fondas

  [1]ŽIA valdaen.wikipedia.org

  The company establishes a vehicle focused on acquiring and leasing agricultural land.

• 2003

  Creation of Agrovaldymo grupė

  [1]ŽIA valdaen.wikipedia.org

  The group establishes the agricultural platform later known as Agrowill Group.

• 2002

  Conversion into an investment holding company

  [1]ŽIA valdaen.wikipedia.org

  ŽIA valda adopts an investment-holding structure and acquires Žvilgsnis iš arčiau, a credit-management and debt-recovery business.

• 1997

  ŽIA valda is founded

  [1]ŽIA valdaen.wikipedia.org

  The Lithuanian investment company is established.

An entrepreneurial investment holding company focused on building, consolidating and restructuring businesses before attracting outside capital or realizing value through partial or complete disposals.

• Asset management · 1997

  Investment holding and portfolio development

  ŽIA valda's core offering is the creation, acquisition, consolidation and restructuring of operating businesses. The group generates value through management involvement, portfolio development, dividends and eventual sales of business interests or public-market transactions.

• Agriculture · 2003

  Agrowill Group

  Agrowill Group was created as an agricultural consolidation platform under the name Agrovaldymo grupė in 2003. It brought together agricultural producers and processors and was described as controlling 17 companies. The platform later became the subject of a public listing on the Vilnius Stock Exchange.

• Agricultural land investment · 2004

  Žemės vystymo fondas

  Founded in 2004, Žemės vystymo fondas focused on acquiring and leasing agricultural land. Its activities supported the consolidation of farming parcels and the provision of leased land to farmers and companies associated with the agricultural portfolio.

• Aviation services · 2005

  Aviation services and infrastructure

  Through its aviation interests, ŽIA valda was involved in Lithuanian Airlines, flyLAL Group Services, later associated with Avia Solutions Group, VA reals and airport infrastructure. Reported projects included aircraft-maintenance hangars, a private passenger terminal and office buildings at Vilnius International Airport.

• Financial intermediation · 2008

  Finhill brokerage services

  Finhill, a ŽIA valda subsidiary established before 2008, received a Category B broker licence in 2008. The licence permitted the subsidiary to provide specified finance-related services.

• Real estate · 2005

  Real-estate development

  The group's real-estate activities included ownership of premises and land in Vilnius, the Gulbinai private-housing development and the Kabantys sodai, or “Hanging Gardens,” project near central Vilnius. The Gulbinai project was sold in 2006.

• 2008

  Raise capital through a share issueOther

  Background

  ŽIA valda sought additional capital for portfolio development and growth initiatives.

  Action taken

  The company launched a share issue valued at 48 million Lithuanian litas and added SX Investments and Amber Capital Partners as shareholders.

  Aftermath

  A board was formed and board operating rules were approved.

  Share issue value. 48 million Lithuanian litas (2008)

  Source

• 2008

  List Agrowill Group on the Vilnius Stock ExchangeProduct launch

  Background

  ŽIA valda aimed to move developed portfolio companies toward public or institutional capital.

  Action taken

  Agrowill Group completed an initial public offering and was listed on the Vilnius Stock Exchange.

  Aftermath

  The reference describes the share value as rising by 30% in the first three months, while the OMX index declined by almost 30% over the same period.

  Agrowill Group share-price change. 30% increase (First three months after the 2008 listing)

  Source

• 2008

  Accelerate Agrowill Group growthStrategy

  Background

  Agrowill Group approved an expansion plan based on acquisitions and substantial growth in farming land and revenue.

  Action taken

  The agricultural group planned approximately ten acquisitions, while ŽIA valda increased its number of shares by 40% and issued additional shares.

  Aftermath

  The supplied material does not document the completion of the planned acquisitions or the later results of the expansion program.

  Source

• 2006

  Sell control of Žvilgsnis iš arčiauM&A

  Background

  The credit-management and debt-recovery subsidiary had been developed into a significant Lithuanian and Baltic market participant.

  Action taken

  ŽIA valda sold a controlling interest to Creditinfo Group.

  Aftermath

  The transaction transferred control to an Icelandic-capital company operating internationally.

  Source

• 2006

  Reorganize the aviation portfolioStrategy

  Background

  After the privatization of Lithuanian Airlines, ŽIA valda sought to separate passenger operations, group services and related real-estate or infrastructure functions.

  Action taken

  The airline interests were reorganized into flyLAL–Lithuanian Airlines, flyLAL Group Services and VA reals.

  Aftermath

  The reorganization created a group reported to contain nine companies and expanded the platform's aviation-services scope.

  Source

• 2002

  Adopt an investment-holding modelStrategy

  Background

  ŽIA valda sought to move beyond individual investments and develop a portfolio of businesses through acquisition, consolidation and restructuring.

  Action taken

  The company became an investment holding company and acquired Žvilgsnis iš arčiau.

  Aftermath

  The credit-management business was later sold to Creditinfo Group in 2006.

  Source

• 2008

  Agrowill Group completes a Vilnius Stock Exchange listing[1]ŽIA valdaen.wikipedia.org

  Product launch · Other

  Agrowill Group became publicly listed in what the reference describes as ŽIA valda's first successful initial public offering.

• 2008

  ŽIA valda launches a 48 million Lithuanian litas share issue[1]ŽIA valdaen.wikipedia.org

  Other · Leadership change

  The holding company issued shares valued at 48 million Lithuanian litas and added SX Investments and Amber Capital Partners as shareholders.

• 2008

  Finhill receives a Category B broker licence[1]ŽIA valdaen.wikipedia.org

  Regulation

  The group's Finhill subsidiary received a Category B brokerage licence for finance-related services.

• 2006

  ŽIA valda reorganizes Lithuanian Airlines interests[1]ŽIA valdaen.wikipedia.org

  Other

  Following the privatization of Lithuanian Airlines, the aviation business was reorganized into flyLAL–Lithuanian Airlines, flyLAL Group Services and VA reals, forming a group of nine companies.

• 2006

  Žvilgsnis iš arčiau controlling interest is sold to Creditinfo Group[1]ŽIA valdaen.wikipedia.org

  M&A

  ŽIA valda sold control of its credit-management and debt-recovery business to Creditinfo Group, an Icelandic-capital company.

• 2004

  ŽIA valda founds Žemės vystymo fondas[1]ŽIA valdaen.wikipedia.org

  Other

  The new company focused on acquiring and leasing agricultural land and supported the consolidation of farming land for agricultural operators.

• 2003

  ŽIA valda establishes an agricultural investment platform[1]ŽIA valdaen.wikipedia.org

  M&A

  The company founded Agrovaldymo grupė, later known as Agrowill Group, to consolidate agricultural producers and processors.

• 2002

  ŽIA valda becomes an investment holding company[1]ŽIA valdaen.wikipedia.org

  M&A

  The company adopted an investment-holding model and acquired Žvilgsnis iš arčiau, a credit-management and debt-recovery company active in Lithuania and the Baltic states.

1. 1ŽIA valdaen.wikipedia.org