Bloomberg News

Top Baltic Online Retailer Pigu Selling Stake to Fund Expansion

April 05, 2013

Owners of Pigu Group, the biggest Baltic online retailer by revenue, seek to sell as much as a 75 percent stake to investors to support further expansion.

Pigu, which forecasts 2013 revenue will increase by about 50 percent to about 130 million litai ($49 million), began contacting potential strategic and financial investors this week, board member Mykolas Majauskas said by phone today in Vilnius, where Pigu is based. KPMG Lithuania is advising.

The online retail market in Lithuania, Latvia and Estonia is growing at about 30 percent a year due to the fastest economic-growth rates in the European Union, investments in IT infrastructure that have yielded rapid broadband connections and the public’s quick adoption of new technologies, according to Majauskas.

“The goal is to find a partner that could allow the company to solidify leadership in the Baltic markets and Finland over the next three to five years,” Majauskas said from the Lithuanian capital. “Further development after that could plausibly include an initial public offering of shares.”

Founding brothers Tadas Karosas and Donatas Karosas indirectly own 90 percent of Pigu, with 10 percent held by Chief Executive Officer Dainius Liulys, according to Majauskas.

Created in 2007, the company now has 19 million visits per year to online stores, including Lithuania’s pigu.lt and 220.lv in Latvia, which it acquired in 2011, according to an e-mailed company profile for potential investors. Pigu said it recently bought a controlling stake in Estonia’s Dlb Trading Ou, which runs web stores dlb.ee in Estonia and dlb.fi in Finland.

Warehouses with modern management systems in Lithuania and Latvia put Pigu ahead of other online Baltic retailers, Majauskas said.

To contact the reporter on this story: Bryan Bradley in Vilnius at bbradley13@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net


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