Ignitis Group plans to delist its subsidiaries from Nasdaq Vilnius

The group is planning to initiate voluntary tender offers for shares of the two subsidiaries, to be followed by mandatory buyouts of minority shareholders.

Ignitis said in a statement on Monday evening that Ignitis Gamyba and ESO would convene extraordinary general meeting of shareholders on December 4 to discuss the proposals.

"The delisting of the subsidiary companies from the stock exchange is being considered due to their illiquid free floats of just 5 percent and lower," Ignitis Group Chairman and CEO Darius Maikstenas said in the statement.

The Finance Ministry, the holding company's sole shareholder, approves the decision, according to the statement.

"That would increase the group's value, ensure sustainable financial returns to the state and enhance the country's energy independence," it quoted Finance Minister Vilius Sapoka as saying.

The ministry sees the planned buyout of minority shareholders in the two subsidiaries as "a necessary solution in the search for further long-term financing alternatives for the entire group," he added.

Ignitis Group currently holds 96.82 percent of shares in Ignitis Gamyba and 94.98 percent in ESO.