Tallinn, Estonia, 2014-08-05 16:01 CEST (GLOBE NEWSWIRE) --
A subsidiary of AS Merko Ehitus group, SIA Merks, signed an agreement for the transfer of 25% holding (275 thousand shares) in the joint venture SIA Zakusala Estates from the current co-shareholder AS Tritan Group on 5 August 2014. After the acquisition of the majority share, SIA Zakusala Estates will become a 75% subsidiary of SIA Merks.
The share capital of SIA Zakusala Estates is EUR 1.6 million of which SIA Merks and AS Tritan Group currently have an equal share of 50% with the nominal value of EUR 0.8 million.
The additional 25% holding was acquired with the purpose of gaining a greater control over the assets and the management of the company. The principal area of activity of the real estate company SIA Zakusala Estates is the development of approximately 126 thousand square meters land located on the island Zakusala on Daugava river in Riga. With the increased control the group will be better positioned to lead the overall future development of the project. This is a long term investment for AS Merko Ehitus group.
According to the agreement SIA Merks will pay for the additional 25% holding the purchase price of EUR 0.7 million by assigning the corresponding part of a loan given by SIA Merks to SIA Zakusala Estates, to AS Tritan Group.
The transaction is not to be treated as a significant transfer for the purposes of the “Requirements for Issuers” section of the NASDAQ OMX Tallinn Stock Market rules, and is also not to be considered a transaction with a related party. As a result of the share acquisition, the transaction will not have any impact on the consolidated profit of AS Merko Ehitus group. Due to consolidation of the SIA Zakusala Estates going forward, there will be an increasing influence on assets and liabilities of approximately EUR 0.8 million and EUR 1.1 million respectively. AS Merko Ehitus confirms that neither SIA Merks’s nor AS Merko Ehitus’s management board and supervisory board members are in any way personally interested in the transaction.
AS Merko Ehitus (http://group.merko.ee) comprises the leading Estonian construction company AS Merko Ehitus Eesti, the Latvian market based SIA Merks and the Lithuanian market based UAB Merko Statyba as well as the group’s real estate development business unit together with companies holding real estate properties. As at the end of 2013, the group employed 860 people and the 2013 revenue amounted to EUR 262.7 million.
Signe Kukin
Group CFO
AS Merko Ehitus
Tel: +372 650 1250
E-mail: signe.kukin@merko.ee