Tiltra Group AB & Kauno tiltai AB

Late in 2005 Invalda in cooperation with their partners acquired one of the largest in Lithuania road building company Kauno Tiltai. Following the acquisition in Lithuania, the company opted to follow a strategy of expanding its presence in the much larger market of Poland. Due to a number of acquisitions and the organic expansion strategy within next five years the revenues of the road building company group increased from EUR 45.6 million in 2005 to more than EUR 365 million in 2010. In April 2011. Polish listed rail infrastructure construction group Trakcja - Tiltra (former company name Trakcja Polska) acquired Tiltra Group and Kauno Tiltai for PLN 777 million. Former Tiltra Group shareholders realized part of treir investment and has become mlnority shareholders in Trakcja - Tiltra. Both the major shareholders and the management of Tiltra Group gained from this transaction.

In December 2005 Invalda in cooperation with its partners (the Vilniaus Prekyba Group and individuals, who later became a road building business managers) incorporated specially for the execution of the transaction a company Kelesta, which acquired Kauno Tiltai - one of the major road builders in Lithuania. Having executed the acquisition transaction funded by borrowed finance (LBO), Kauno Tiltai, by way of acquisitions and its internal organic expansion soon became the leader in the Lithuanian road and bridge construction sector and expanded its activities in Poland.

In August 2007 Kauno Tiltai took over the control of Kelda - a road building company operating in Vievis. In October 2007 Kauno Tiltai acquired a 50 % shareholding of the consortium Tiltra operating in Poland, thus increasing its interest in the company to 100 %.

In expanding its presence in Poland the consortium Tiltra acquired PEUiM - a company operating in the Bialystok region. In its own turn PEUiM acquired a road tile manufacturer Brux and the engineering network company Dalba. June 2008 was the time when Tiltra Group was incorporated to take over the coordination functions from Kauno Tiltai. In June 2009 Tiltra Group through Silentio Investments, in which it holds a 77 % interest, acquired a Polish road building and bridge construction company Poldim operating in the Southern regions of the country. In July 2010 the shareholding in Poldim was increased to 100 %.

In 2010 the revenues generated by the road building and bridge construction sector including Poldim exceeded EUR 365 million. To compare, in 2005 the revenues from this sector of activities amounted to EUR 45.6 million.

Invalda AB owned a 43.7 % interest in Kauno Tiltai, and 44.8 % of shares in Tiltra Group. In 19 April 2011 Polish listed rail infrastructure construction market leader Trakcja - Tiltra (former company name Trakcja Polska) acquired holdings in Invalda group companies' Tiltra Group and Kauno Tiltai for a total PLN 314.1 million (EUR 79.5 million) amount. At the same time Invalda acquired 12.5 % shares of Trakcja - Tiltra, PLN 119.8 million (EUR 30.3 million) nomlnal value Trakcja - Tiltra bonds with an annual coupon - 7 %, which were redeemed in 2013-2014. The remaining PLN 62 million (EUR 15.2 million) Invalda received in cash. Taking into account the selling price of the acquired financial instruments, currency exchange rate and expenses related to the transaction, the final amount received for the deal was EUR 30.4 million.