City Service AB, the biggest Baltic building maintenance company, rose to a three-month high after completing the purchase of a Polish company to start expanding into central Europe.
The shares rose as much as 2.7 percent and traded up 2.2 percent at 1.89 euros at 12:33 p.m. in Vilnius, the highest since Aug. 30, valuing the company at 59.7 million euros ($79 million). Volume of 12,801 shares was equivalent to 220 percent of the three-month average, according to data compiled by Bloomberg.
City Service, which operates in Lithuania, Latvia, Russia and Ukraine, paid 45 million zloty ($15 million) for state-owned facility manager Zespol Zarzadcow Nieruchomosci WAM Sp. z o.o., the Vilnius-based company said in a regulatory statement today. That gives it 3.4 percent of Poland’s residential facility management market and creates opportunities for further expansion, it said.
“The transaction value seems to be quite low and came below our expectations,” Tadas Povilauskas, a Vilnius-based analyst at investment bank Finasta, said in a note today. “We positively treat such a purchase and believe it will be value added to the share price of City Service.”