“It is getting more and more obvious that City Service has already found a buyer for its subsidiary or the parties are negotiating the terms of the agreement. I do not think that the shareholders would be asked to approve the company’s sale without a valid reason,” Šarūnas Skyrius, partner with the Baltic investment bank GILD Bankers, told the daily.
Companies mentioned as potential buyers of City Service LT include Lithuania’s investment company Invalda as well as Scandinavia’s concerns active in property maintenance and foreign private equity funds. Earlier media reports also mentioned Sweden’s East Capital Asset Management, which now owns 10 percent of City Service through one of its funds.
“It would be logical if the investor was one of Scandinavian companies active in this sector as they were always interested in the Baltic countries and the utilities’ business. On the other hand, this business is strongly related with politics, changes in legislative base, which requires contacts and relations, and it may scare foreigners off. Speaking about this business, much depends on political situation in the city of Vilnius,” Tadas Povilauskas, analyst with investment bank Finasta, told the daily.
