East Capital seen as most likely buyer of Lithuania's City Service LT

It is believed that the company will be sold to a foreign investor. According to Eversus.lt, the investment company East Capital, a shareholder of City Service, is seen as the most serious potential buyer.

East Capital Asset Management currently holds a 10.02 percent stake in City Service.

Aivaras Abromavičius, a partner with East Capital, would not say if they are among the potential buyers of City Service LT.

On 10 May, East Capital closed a deal on the sale of a 7.87 percent stake in Lithuania's telecoms company Teo LT to TeliaSonera at 0.637 euros per share.

"We will invest part of the proceeds from this transaction into the newly-established East Capital Baltic Property Fund 2. The new fund will solely invest in real estate in the three Baltic countries," Abromavičius said, but gave no details on where the other part of the proceeds would go.

Financial analysts say that City Service LT could be sold for 120 million to 140 million litas (EUR 35-41 m).

City Service LT, which has been separated from City Service, provides building maintenance services in Lithuania and Latvia. It is said that building administration operations in the Baltic countries generate 155 million litas in revenues to the company.

The shareholders have until 1 July 2012 to sell City Service LT, because the Law on the Heating Sector requires separating heating supply from heating system maintenance.