AS Kalev Paide Tootmine today signed a contract with AS Rubla for the sale of
shares. The contract was concluded for the purchase of 8,000,000 shares in TERE
AS (hereinafter “TERE”) with a nominal value of 10 EEK (0.64 EUR) per share, and
a total nominal value of 80,000,000 EEK (5,112,932 EUR), which comprises 100% of
the share capital.
The transaction shall be completed after the agreed-upon preconditions are
fulfilled, which among other things include the approval of the share
acquisition transaction by the general meeting of shareholders of AS Kalev. The
estimated date for completion of the transaction provided that all preconditions
are met in a timely manner is 18 October 2008.
The purchase price for the shares is 929,376,750 EEK (59,398,000 EUR). The
entire purchase price shall be paid to the seller simultaneously with the
transfer of ownership on the date of completion of the transaction. The purchase
price was established based on a valuation of the true and fair value of AS Tere
performed by the independent auditor firm AS Deloitte Advisory.
With the acquisition of AS Tere, the strengthening and restructuring of AS
Kalev's dairy sector will be completed. AS Kalev majority shareholder AS Rubla
will consolidate all of the activities in the dairy sector into one company.
Pursuant to the rules for issuers established by the Tallinn Stock Exchange, the
aforementioned sales transaction is considered a transaction with a related
party. This is a transaction within a group, by which AS Kalev's parent company
AS Rubla sells shares in its subsidiary AS Tere to AS Kalev's subsidiary AS
Kalev Paide Tootmine.
The members of the supervisory boards and management boards of AS Kalev Paide
Tootmine, AS Rubla and AS Kalev have no vested interest whatsoever in this
transaction. The transaction was conducted at market conditions.
Tere AS was formed on 27 July 2007 as a result of the restructuring process
taking place in the foodstuff manufacturer group. Consolidated into AS Tere were
the dairy production for the former parent company and, as a new addition,
production of sweet curds products, which was acquired from Kohuke AS. The
primary activity of AS Tere is milk processing and production of dairy products.
AS Tere's best-known trademarks are Tere, Kohuke, DrHellus, Fit! and Merevaik.
AS Tere has one subsidiary: Meieri Transport AS, which is engaged in transport
of raw milk.
1. Other data about the company being acquired
The company being acquired was entered into the Commercial Register on 30 July
2007; thus the financial results are only for 2007.
The financial results for the company being acquired in 2007 were the following:
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| 01.01.07-31.12.07 | thousands of kroons | thousands of EUR |
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| Turnover | 492 624 | 31 484 |
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| Profit | | |
| | 47 836 | 3 057 |
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| Dividends per share | 0 | 0 |
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| Net profit per share | 0.60 | 0.038 |
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The audited annual report for 2007 for the company being acquired was the
following:
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| Income statement | Thousands of | Thousands of |
| | EEK | EUR |
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| Revenue | 492 624 | 31 484 |
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| Cost of sales | -402 690 | -25 737 |
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| Gross profit | 89 934 | 5 748 |
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| Marketing expenses | -31 352 | -2 004 |
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| Administration expenses | -13 022 | -832 |
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| Other operating revenue | 3 647 | 233 |
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| Other operating expenses | -418 | -27 |
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| Operating profit | 48 789 | 3 118 |
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| Net financial items | -953 | -61 |
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| Profit before taxes | 47 836 | 3 057 |
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| Net profit for the financial year | 47 836 | 3 057 |
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| Balance sheet | Thousands of | Thousands of |
| | EEK | EUR |
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| Cash and bank accounts | 6 307 | 403 |
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| Receivables and prepayments | 150 054 | 9 590 |
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| Stocks | 37 247 | 2 381 |
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| Total current assets | 193 608 | 12 374 |
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| Property, plant and equipment | 112 516 | 7 191 |
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| Intangible non-current assets | 1 630 | 104 |
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| Total non-current assets | 114 146 | 7 295 |
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| TOTAL ASSETS | 307 754 | 19 669 |
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| Loan obligations | 47 988 | 3 067 |
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| Payables and prepayments | 118 199 | 7 554 |
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| Total short-term obligations | 166 187 | 10 621 |
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| Long-term loan obligations | 13 731 | 878 |
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| Total long-term obligations | 13 731 | 878 |
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| Total liabilities | 179 918 | 11 499 |
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| Share capital | 80 000 | 5 113 |
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| Mandatory reserve | 0 | 0 |
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| Retained earnings | 47 836 | 3 057 |
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| Total equity | 127 836 | 8 170 |
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| Total liabilities and equity | 307 754 | 19 669 |
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1.4. There were no material changes in the economic activity of the company
being acquired.
1.5. Loans taken by the company being acquired as of 30 June 2008 were the
following:
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| Lender | Amount | Amount |
| | EEK | EUR |
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| SEB operating credit | 28 500 000 | 1 821 482 |
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1.6. The structure of shareholders and list of shareholders in the company being
acquired is the following:
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| Sharehold | Share | Number of | Total nominal | Share % | Number of |
| er | nominal | shares | value of | | votes |
| | value | | shares held | | |
| | | | by | | |
| | | | shareholder | | |
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| AS Rubla | 10 EEK | 8,000,000 | 80,000,000 | 100% | 800 000 |
| | (0,64 EUR) | shares | EEK | | |
| | | | (5 112 932 | | |
| | | | EUR) | | |
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1.5. There are no court and arbitration proceedings related to the company being
acquired which may have a material influence on the economic activity of the
company.
1.6. A contract for provision of service without a term has been concluded
between AS Kalev Paide Tootmine and the company being acquired, on the basis of
which AS Kalev Paide Tootmine produces various products for AS Tere. Provision
of service takes place on the basis of unit prices agreed upon between the
parties and is done on the basis of current market prices.
1.7. The names of members of the management board and supervisory board of the
company being acquired are as follows:
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| Member of the management board | Member of the supervisory board |
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| Ülo Kivine | Oliver Kruuda |
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| | Allan Viirma |
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| | Taavi Toots |
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The EEK-EUR exchange rate is calculated as follows in this press release:
1 EUR= 15.6466 EEK
Oliver Kruuda
AS Kalev and AS Kalev Paide Tootmine
member of the management board
tel 6886600
AS Kalev Paide Tootmine (AS Kalev's subsidiary) to acquire share in AS TERE
| Source: Luterma