AS Kalev's subsidiary AS Kalev Paide Tootmine signed a contract of purchase and sale of shares with OÜ AH Seenior, OÜ Hatike, Faasani Kaubanduse OÜ and OÜ M.V.Food yesterday. The contract was concluded on the purchase of 4 shares of OÜ Põlva Piim Tootmine (hereinafter "PPT") which have a total nominal value of 10,060,000 EEK (642,951 EUR) and make up 100% of the share capital. The preconditions for completion of the transaction include, among other things, the corresponding approval by the Estonian Competition Board as well as approval of the acquisition transaction by the General Meeting of the Shareholders of AS Kalev. The purchase price amounts to 312,932,000 EEK (20,000,000 EUR), less PPT's interest-bearing liabilities as of the transaction date. The buyer will pay 8,000,000 EEK (511,293 EUR) of the purchase price as an advance payment upon conclusion of the transaction. The buyer will pay an annual interest of 8% on the difference between the final purchase price and the advance payment until full payment of the purchase price. The full purchase price shall be paid to the sellers on the date of completion of the ownership transfer transaction. The acquired shares have been encumbered in favour of AS SEB Pank in the amount of 197,000,000 kroons (12,590,595 EUR) and serve to guarantee PPT*s financial liabilities to AS SEB Pank. PPT's main activity is milk processing and marketing of dairy products. One-third of the company's revenue is generated from the Estonian market, the remainder is exported. According to AS Kalev financial director Tarmo Maasikamäe, the seller and the buyer both made a good deal. "This is a win-win transaction. The sellers must be very satisfied. As buyers, we believe in the company's development potential. We can discuss the goals in more detail after the ruling of the Competition Board and completion of the transaction,” said Maasikamäe. The transaction is not a transaction with a related party in the meaning of the requirements established for issuers by the Tallinn Stock Exchange. Neither do the members of the supervisory boards and management boards of AS Kalev Paide Tootmine and AS Kalev have any other personal interest in the transaction. 1 Data on the acquired company 1.1 Financial results of the acquired company for the past three years: -------------------------------------------------------------------------------- | PPT | 01.01.07-31.12.07|01.01.06-31.12.06| 03.09.04-31.12.05| -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Turnover | 486 214 375 EEK | 325 425 230 EEK | 372 394 436 EEK | | | (31 074 762 EUR) | (20 798 463 EUR)| (23 800 342 EUR) | -------------------------------------------------------------------------------- | Profit | | 15 680 950 EEK | 19 602 690 EEK | | | 49 061 519 EEK | (1 002 195 EUR) | (1 252 840 EUR) | | | (3 135 602 EUR) | | | | | | | | -------------------------------------------------------------------------------- | Net profit per 1 | 1.96 EEK | 1.56 EEK | 4.88 EEK | | kroon of share | (0.13 EUR) | (0.10 EUR) | (0.31 EUR) | | capital | | | | -------------------------------------------------------------------------------- 1.2 The audited financial statements of the acquired company for the past two years have been brought out below: Income statement -------------------------------------------------------------------------------- | | 2007 | 2007 | 2006 | 2006 | -------------------------------------------------------------------------------- | | EEK | EUR | EEK | EUR | -------------------------------------------------------------------------------- | Revenue | 486 214 375 | 31 074 762 | 325 425 230 | 20 798 463 | -------------------------------------------------------------------------------- | Cost of sales | 403 050 468 | 25 759 620 | 280 954 568 | 17 956 270 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Gross profit | 83 163 907 | 5 315 142 | 44 470 662 | 2 842 193 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Marketing | 19 831 736 | 1 267 479 | 19 020 449 | 1 215 628 | | expenses | | | | | -------------------------------------------------------------------------------- | Administrative | 9 954 509 | 636 209 | 9 540 335 | 609 739 | | and general | | | | | | expenses | | | | | -------------------------------------------------------------------------------- | Other income | 629 927 | 40 260 | 3 012 059 | 192 506 | -------------------------------------------------------------------------------- | Other expenses | 857 381 | 54 797 | 242 209 | 15 480 | -------------------------------------------------------------------------------- | Operating profit | 53 150 208 | 3 396 917 | 18 679 728 | 1 193 852 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Financial | -4 088 689 | -261 315 | -2 998 778 | -191 657 | | expenses | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net profit for | 49 061 519 | 3 135 603 | 15 680 950 | 1 002 195 | | the financial | | | | | | year | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Balance sheet | 39 447 | 2 521 | 39 082 | 2 498 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | ASSETS | | | | | -------------------------------------------------------------------------------- | Current assets | | | | | -------------------------------------------------------------------------------- | Cash | 31 280 309 | 1 999 176 | 3 407 359 | 217 770 | -------------------------------------------------------------------------------- | Total receivables | 25 083 990 | 1 603 159 | 17 529 919 | 1 120 366 | -------------------------------------------------------------------------------- | Other receivables | 2 929 979 | 187 260 | 5 168 741 | 330 343 | | and prepayments | | | | | -------------------------------------------------------------------------------- | Inventories | 35 152 765 | 2 246 671 | 19 801 124 | 1 265 522 | -------------------------------------------------------------------------------- | Total current | 94 447 043 | 6 036 266 | 45 907 143 | 2 934 001 | | assets | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-current | | | | | | assets | | | | | -------------------------------------------------------------------------------- | Long-term | 312 211 | 19 954 | 385 784 | 24 656 | | financial | | | | | | investments | | | | | -------------------------------------------------------------------------------- | Property, plant | 121 832 659 | 7 786 526 | 127 392 517 | 8 141 866 | | and equipment | | | | | -------------------------------------------------------------------------------- | Total non-current | 122 144 870 | 7 806 480 | 127 778 301 | 8 166 522 | | assets | | | | | -------------------------------------------------------------------------------- | TOTAL ASSETS | 216 591 913 | 13 842 746 | 173 685 444 | 11 100 523 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | LIABILITIES AND | | | | | | OWNER'S EQUITY | | | | | -------------------------------------------------------------------------------- | Current | | | | | | liabilities | | | | | -------------------------------------------------------------------------------- | Short-term | 8 723 292 | 557 520 | 18 463 056 | 1 180 004 | | borrowings | | | | | -------------------------------------------------------------------------------- | Accounts payable | 46 896 943 | 2 997 261 | 27 040 708 | 1 728 216 | -------------------------------------------------------------------------------- | Other short-term | 6 827 213 | 436 338 | 6 751 036 | 431 470 | | payables and | | | | | | prepayments | | | | | -------------------------------------------------------------------------------- | Short-term | 2 440 538 | 155 979 | 3 814 713 | 243 805 | | portion of the | | | | | | finance lease | | | | | -------------------------------------------------------------------------------- | Total current | 64 887 986 | 4 147 098 | 56 069 513 | 3 583 495 | | liabilities | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-current | | | | | | liabilities | | | | | -------------------------------------------------------------------------------- | Long-term | 33 633 306 | 2 149 560 | 42 456 203 | 2 713 446 | | borrowings | | | | | -------------------------------------------------------------------------------- | Long-term portion | 3 317 508 | 212 027 | 9 468 134 | 605 124 | | of the finance | | | | | | lease | | | | | -------------------------------------------------------------------------------- | Total non-current | 36 950 814 | 2 361 587 | 51 924 337 | 3 318 570 | | liabilities | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | TOTAL LIABILITIES | 101 838 800 | 6 508 686 | 107 993 850 | 6 902 065 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Owner's equity | | | | | -------------------------------------------------------------------------------- | Share capital | 10 060 000 | 642 951 | 10 060 000 | 642 951 | -------------------------------------------------------------------------------- | Share premium | 20 006 000 | 1 278 616 | 20 006 000 | 1 278 616 | -------------------------------------------------------------------------------- | Mandatory reserve | 1 006 000 | 64 295 | 1 000 000 | 63 912 | -------------------------------------------------------------------------------- | Retained earnings | 34 619 594 | 2 212 595 | 18 944 644 | 1 210 783 | -------------------------------------------------------------------------------- | Profit for the | 49 061 519 | 3 135 603 | 15 680 950 | 1 002 195 | | year | | | | | -------------------------------------------------------------------------------- | Total owner's | 114 753 113 | 7 334 061 | 65 691 594 | 4 198 458 | | equity | | | | | -------------------------------------------------------------------------------- | TOTAL LIABILITIES | 216 591 913 | 13 842 746 | 173 685 444 | 11 100 523 | | AND OWNER'S | | | | | | EQUITY | | | | | -------------------------------------------------------------------------------- 1.3 After the end of last financial year, on 15 January 2008, a merger agreement was concluded with MBO Vara OÜ. Põlva Piim Tootmine OÜ was the acquiring company. There have been no other material changes in the economic activities of the acquired company. 1.4 The borrowings of the acquired company as of 28 August 2008: -------------------------------------------------------------------------------- | Creditor | Amount | Amount | | | EEK | EUR | -------------------------------------------------------------------------------- | SEB Pank AS | 93 800 115 | 5 994 920 | -------------------------------------------------------------------------------- | SEB Liising AS | 17 753 909 | 1 134 682 | -------------------------------------------------------------------------------- 1.5 Structure and list of shareholders of the acquired company: -------------------------------------------------------------------------------- | Shareholder | Nominal | Nominal | Participation| Number of | | | value of the | value of | % | votes | | | share | the share | | | | | EEK | EUR | | | -------------------------------------------------------------------------------- | OÜ Hatike | 2 012 000 | 128 590 | 20% | 20 120 | -------------------------------------------------------------------------------- | OÜ AH Seenior | 4 024 000 | 257 180 | 40% | 40 240 | -------------------------------------------------------------------------------- | OÜ M.V.Food | 2 012 000 | 128 590 | 20% | 20 120 | -------------------------------------------------------------------------------- | Faasani Kaubandus | 2 012 000 | 128 590 | 20% | 20 120 | | OÜ | | | | | -------------------------------------------------------------------------------- 1.6 AS Põlva Vesi has filed a statement of claim against OÜ Põlva Piim Tootmine in connection with the water supply and sewerage service contract. There are no other pending court or arbitral tribunal cases which may have a material effect on the economic activities of OÜ Põlva Piim Tootmine. 1.7 There are no valid contracts between AS Kalev Paide Tootmine and OÜ Põlva Piim. 1.8 The members of the management board of the acquired company include Aivar Häelm, Viljar Veevo, Raul Lusti and Andrus Roiland. * For the purposes of this press release, the exchange rate between EEK and EUR is denominated as follows: 1 EUR= 15.6466 EEK Allan Viirma Head of Legal Service 688 6616
AS Kalev Paide Tootmine to acquire a stake in OÜ Põlva Piim Tootmine
| Source: Luterma