Shares of AS Kalev's subsidiaries unblocked by court

Harju County Court, having heard AS Kalev's arguments in the court dispute with
AS Alta Foods, cancelled the prohibition on disposal of the shares of AS
Kalev's subsidiary AS Kalev Paide Tootmine (who, in turn, owns the shares of AS
Tere, OÜ Põlva Piim Tootmine and AS Valmetek Invest) by the court order of 9
December 2008 and fully unblocked the shares. The court cancelled the
prohibition on disposal of the shares of AS Kalev Chocolate Factory, retaining
a 15% block on the shares of AS Kalev Chocolate Factory. The court ordered AS
Alta Foods to deposit with the court, by 19 December, 5 million kroons as
security to the potential damage to AS Kalev in connection with the block on
disposal of 15% of the shares of AS Kalev Chocolate Factory. 
AS Kalev's representative, attorney-at-law Leon Glikman comments: “The court
concurred with our perception that a 15% block on the shares of AS Kalev
Chocolate Factory will be sufficient to serve to claim of AS Alta Foods, with
any additional block being disproportionate and unnecessary. The court based
the selection of the security measure on the claim submitted by AS Alta Foods -
a claim which is liable to be dismissed by court or arbitration. AS Alta Foods
may, of course, contest the well-motivated ruling. Whether it will prove
successful is, however, doubtful. The court ordered AS Alta Foods to make a
deposit in security to the potential damage of AS Kalev. If the company fails
to make the deposit, the ruling will be cancelled. The ruling entails that, by
submitting the application for securing an action, AS Alta Foods takes the risk
of compensating any damage incurred by the defendant if the claim is dismissed,
with the requirement of depositing the corresponding security for the benefit
of AS Kalev straight away.” 
The ruling of Harju County Court may be appealed to the Tallinn Circuit Court
within 10 days. 

Allan Viirma
Head of Legal Service
Telephone: 688 6616