02.12.2011: Litigation between Arco Vara and Indrek Porila ends with transfer of a stake in Floriston to Indrek Porila


The litigation between Arco Vara and Indrek Porila has ended with a compromise agreement that fully complies with the proposal made by Arco Vara prior to the lawsuit.

In a stock exchange announcement of 26 May 2010 Arco Vara stated that Indrek Porila had brought an action against Arco Vara AS. On 1 December 2011 the parties signed an agreement under which the claim of Indrek Porila will be settled by Arco Vara AS transferring a share with a par value of EUR 319.6 in Floriston Grupp OÜ to EPRI Invest OÜ. The share is registered in the Estonian Central Register of Securities and accounts for 12.5% of the entity’s share capital. EPRI Invest OÜ’s sole shareholder and management board member is Indrek Porila.

The transaction does not have any significant impact on the group’s balance sheet or income statement.

Floriston Grupp OÜ is involved in letting and operating own and leased real estate. The remaining 87.5% stake in the entity is held by Ärimaja AS and Majaarendus OÜ, companies related to Marcel Vichmann and Olav Miil.

For further information on the settled litigation, see Arco Vara’s interim report for the third quarter of 2011: note 15 Contingent assets and liabilities, subsection Action brought by Indrek Porila against Arco Vara AS.

Established in 1992, Arco Vara is one of the leading real estate development companies in the Baltic countries. The company’s main activity is real estate development, which is supported by brokerage, valuation, construction and property management.
Arco Vara has offices in 17 cities in Estonia, Latvia, Ukraine and Bulgaria.

Lembit Tampere
Member of the Management Board
Arco Vara AS
Tel: +372 614 4630
info@arcovara.ee
http://www.arcorealestate.com