Tallinn, Estonia, 2015-03-26 07:30 CET (GLOBE NEWSWIRE) --
On 25 March 2015, AS Merko Ehitus group company AS Merko Ehitus Eesti and E.L.L. Kinnisvara AS entered into an agreement on the acquisition of a 100% holding in OÜ Rannamõisa Kinnisvara and a put option of the shares.
OÜ Rannamõisa Kinnisvara is a company engaged in development of real estate, which owns registered immovable properties in Tallinn at Rannamõisa Road and Kaeravälja Street with a total area of approximately 35 thousand m². The purpose of the acquisition of the holding by AS Merko Ehitus Eesti is to develop the properties in question and sell them to a third party. The price of the 100% holding is approximately EUR 3.3 million, which is to be paid to the seller after the transfer of immovable properties belonging to OÜ Rannamõisa Kinnisvara to the third parties but no later than 30 June 2016.
The Parties have entered into an agreement on an option to resell the 100% holding. This gives AS Merko Ehitus Eesti the right to resell the holding for the price that has been paid by the moment of the resale, plus the cost of acquisition of immovable properties acquired by OÜ Rannamõisa Kinnisvara during the time it was held by AS Merko Ehitus Eesti, in case such immovable properties are acquired. The expiration date of the put option is 29 June 2016.
The transaction is not to be treated as a significant transfer for the purposes of the “Requirements for Issuers” section of the NASDAQ Tallinn Stock Market rules, but it is to be considered a transaction with a related party – E.L.L. Kinnisvara AS is a company controlled by AS Riverito. 71.99% of the shares of AS Merko Ehitus are owned by AS Riverito.
As a result of the share transfer and future consolidation of Rannamõisa Kinnisvara OÜ line by line, the transaction will have an estimated EUR 0 influence on the consolidated profit of AS Merko Ehitus group, and an increasing influence on assets and liabilities of approximately EUR 3.3 million. AS Merko Ehitus confirms that neither AS Merko Ehitus Eesti nor AS Merko Ehitus’s management board and supervisory board members are in any way personally interested in the transaction.
AS Merko Ehitus Eesti (www.merko.ee) is Estonian leading construction company, which offers construction services in general construction, civil engineering, road, electrical and residential construction.
Additional information: AS Merko Ehitus Eesti, Chairman of the Management Board, Mr. Tiit Roben, phone: +372 680 5105.
Merit Kullasepp
Communications and Marketing Manager
AS Merko Ehitus
Phone: +372 650 1250
E-mail: merit.kullasepp@merko.ee
AS Merko Ehitus (group.merko.ee) consists of Estonia’s leading construction company AS Merko Ehitus Eesti, the Latvian-market-oriented SIA Merks, UAB Merko Statyba that is operating on the Lithuanian market and the real estate development business unit along with real estate holding companies. As at the end of the year 2014, the group employed 765 people and the company’s revenue for 2014 was EUR 252.3 million.