Intra-group restructuring of car trade in Lithuania
TKM Grupp AS has consolidated its car trade segment activities into the subsidiary TKM Auto OÜ, in which TKM Grupp AS holds a 100% stake. According to the published on 03.02.2023, TKM Auto OÜ's Lithuanian subsidiary UAB Motus auto became a Škoda dealer in Lithuania in addition to KIAs. In order to separate the KIA and Škoda business lines and increase their independence, the division of UAB Motus auto will be carried out. As a result of the division, UAB Motus auto (the dividing company) will bear the previously used business name UAB KIA Auto and will continue with the resale and service of KIAs. During the division, a new subsidiary will be established with the previously used business name UAB Motus auto (the acquiring company), which will also be 100% owned by TKM Auto OÜ and whose share capital will be 1 000 euros. The share capital of UAB KIA Auto will be reduced in accordance with the requirements of Lithuanian legislation. UAB Motus auto will take over the Škoda resale and service business line, which will allow it to focus on activities more efficiently and thereby achieve better results. Each Lithuanian subsidiary will be led by a separate experienced manager dedicated to the respective brand.
TKM Group's strategic goal is to continue expanding in the car trade sector, which has been one of its key segments since 2007. The Group's car trade segment includes a company with an independent dealer network importing KIAs in the Baltics and companies engaged in car retail and service in two showrooms in Tallinn, two showrooms in Riga and two showrooms in Vilnius. In addition to KIAs, there are several other car brands to choose from, such as Peugeot in Estonia and Latvia and Škoda in Latvia and Lithuania.
The Group's car trade segment is undergoing active development and expansion. A temporary KIA showroom has been opened on the Bikernieku property in Riga, and a new full-size KIA dealership is planned to be opened in the coming years to better serve customers in this part of Riga. In Lithuania, the construction of a new KIA-Škoda multi-brand dealership in Vilnius was started in cooperation with TKM Lietuva UAB, which is part of the Group. At the beginning of January, the Estonian dealer of the automotive segment, Viking Motors, opened a new KIA flagship dealership in Peetri on the border of Tallinn. It is also planned to start construction of a new body shop next to the Peetri car dealership. The Group's automotive segment's sales revenue in 2024 was 200.8 million euros, making it the Group's second largest segment in terms of both turnover and profit after supermarkets.
The approximate registration of the above-described division in the commercial register will take place in the first half year of 2025. The creation of a subsidiary through a division will not have an impact on the consolidated financial results of the Group. The creation of a subsidiary is not considered to be the acquisition of a significant holding within the meaning of the Nasdaq Tallinn Stock Exchange Rules. The structuring described above will not have a significant impact on the activities of the TKM Grupp Group. The members of the supervisory board and management board of TKM Grupp AS have no other personal interest in the transactions.
Raul Puusepp
Chairman of the Management Board
Tel 731 5000
