Acquisition of shareholding in AS Tallinna Moekombinaat


AS Pro Kapital Eesti, company belonging to group of companies of AS Pro Kapital Grupp, has on 21.12.2016 concluded the contract for purchase of minority shareholding of its subsidiary AS Tallinna Moekombinaat.

Based on the purchase contract AS Pro Kapital Eesti bought 343 750 of the A-shares of AS Tallinna Moekombinaat for 550 000 EUR, which represents 1,61% of all AS Tallinna Moekombinaat shares. The shares were paid for on 21.12.2016. After the acquisition AS Pro Kapital Eesti holds 91,9% of AS Tallinna Moekombinaat shares.

The transaction has no significant effect on profit, assets and liabilities of the Issuer.

The seller of the shares was Katmandu Stiftung, Liechtenstein company controlled by Mr Ernesto Preatoni. Mr. Ernesto Preatoni and his affiliates are the largest shareholders of AS Pro Kapital Grupp. The transaction is a related party transaction, members of the Issuer’s supervisory board and management board are not personally interested in the transaction.

AS Tallinna Moekombinaat field of activity is real estate development and its business activity is the development of T1 shopping and entertainment center located in Tallinn.

The goal of purchase of the participation was to increase Pro Kapital’s shareholding in the company developing T1 shopping and entertainment center.

AS Tallinna Moekombinaat financial results for previous 3 years:

 

(in euros) 2015 2014 2013
Revenue 0 0 0
Profit (loss) for the financial year -968 291 145 790 -188 924
Profit (loss) for the financial year per share -0,05 0,01 -0,01

 

AS Tallinna Moekombinaat audited financial reports for the previous 2 years:

  

Statement of Financial Position      
       
(in euros) 31.12.2015 31.12.2014 31.12.2013
Assets      
Current Assets      
Cash and bank balances 18 801 42 193 2
Current receivables and prepayments 210 908 46 958 11 817
Total Current Assets 229 709 89 151 11 819
Non-Current Assets      
Investment property 26 300 000 25 700 000 24 300 000
Total Non-Current Assets 26 300 000 25 700 000 24 300 000
Total Assets 26 529 709 25 789 151 24 311 819
Liabilities and Equity      
Liabilities      
Current Liabilities      
Current debt 30 000 0 0
Current payables and advances 908 857 183 288 370 668
Short-term provisions 0 0 26 299
Total Current Liabilities 938 857 183 288 396 967
Non-Current Liabilities      
Non-current debt 2 826 595 2 814 595 2 277 120
Non-current payables 777 862 39 615 24 401
Long-term provisions 84 467 34 183 0
Total Non-Current Liabilities 3 688 924 2 888 393 2 301 521
Total Liabilities 4 627 781 3 071 681 2 698 488
Equity      
Share capital in nominal value 12 491 259 12 312 000 12 072 000
Unregistered share capital 0 135 823 0
Share premium 691 839 582 526 0
Statutory reserve 7 290 0 0
Retained earnings 9 679 831 9 541 331 9 730 255
Profit (loss) for the financial year -968 291 145 790 -188 924
Total equity 21 901 928 22 717 470 21 613 331
Total liabilities and equity 26 529 709 25 789 151 24 311 819
       
       
Income Statement       
       
(in euros) 2015 2014 2013
Marketing expenses -37 870 -47 305 -3 336
Administration expenses -380 371 -303 571 -94 352
Other operating income 0 640 318 0
Other operating expenses -383 048 -348 0
Gross profit (loss) -801 289 289 094 -97 688
Interest expenses -167 006 -143 331 -91 236
Other financial income 4 27 0
Profit (loss) before tax -968 291 145 790 -188 924
Profit (loss) for the year -968 291 145 790 -188 924
       
       
Statement of cash flows      
       
(in euros) 2015 2014 2013
Cash flows from operating activities      
Gross profit (loss) -801 289 289 094 -97 688
Adjustments      
Other adjustments  382 645 -636 820 0
Total adjustments 382 645 -636 820 0
Changes in trade receivables and prepayments -163 950 116 859 5 739
Changes in liabilities and prepayments 1 348 201 9 847 -446 014
Interests received from operating activities 4 27 0
Total cash flows from operating activities 765 611 -220 993 -537 963
Cash flows from investing activities      
Payments for investment property -982 645 -1 015 494 -302 264
Total cash flows from investing activities -982 645 -1 015 494 -302 264
Cash flows from financing activities      
Proceeds from borrowings 112 000 637 475 839 050
Repayments of borrowings -70 000 -100 000 0
Interests paid -1 107 -217 146 0
Proceeds from increase of share capital 152 749 958 349 0
Total cash flows from financing activities 193 642 1 278 678 839 050
Total cash flows -23 392 42 191 -1 177
Cash and cash equivalents at the beginning of the year 42 193 2 1 179
Change in cash and cash equivalents -23 392 42 191 -1 177
Cash and cash equivalents at the end of the year 18 801 42 193 2

 

 

Statement of Changes in Equity            
             
(in euros) Issued capital Unregistered share capital Share premium Statutory reserve Retained earnings (loss) Total
31.12.2012 12 072 000 0 0 0 -2 940 028 9 131 972
Profit (loss) for the financial year 0 0 0 0 -188 924 -188 924
Other changes in equity 0 0 0 0 12 670 283 12 670 283
31.12.2013 12 072 000 0 0 0 9 541 331 21 613 331
Profit (loss) for the financial year 0 0 0 0 145 790 145 790
Increase of share capital 240 000 135 823 582 526 0 0 958 349
31.12.2014 12 312 000 135 823 582 526 0 9 687 121 22 717 470
Profit (loss) for the financial year 0 0 0 0 -968 291 -968 291
Increase of share capital 179 259 -135 823 109 313 0 0 152 749
Changes in reserves 0 0 0 7 290 -7 290 0
31.12.2015 12 491 259 0 691 839 7 290 8 711 540 21 901 928

 

Since the end of the previous financial year no significant changes have occurred to the business of AS Tallinna Moekombinaat. On 18.11.2016 AS Tallinna Moekombinaat signed a contract for financing the design and construction works of the T1 shopping and entertainment center, located at Peterburi mnt. 2, Tallinn. The total volume of the financing agreement is 65 million EUR. The signed financing agreement and the funds at the disposal of Pro Kapital make the T1 shopping and entertainment center project fully funded and on track to open in autumn 2018.   

Overview of the loans taken by AS Tallinna Moekombinaat as of 30.11.2016:

  • AS Pro Kapital Eesti has provided loan in amount of 8 057 220 euros;
  • Minor shareholder’s Fiducuiaria Emiliana S.R.L. loan balance is 196 800 euros;
  • Minor shareholder’s A.F.I. American Financial Investments Ltd. loan balance is 111 375 euros.

AS Tallinna Moekombinaat shareholders structure (post transaction):

Shareholder Number of shares Shareholding %
AS Pro Kapital Eesti 19 659 153 91,9
Minority shareholders* 1 722 135 8,1
Total 21 381 288  
     
* none of the minority shareholders holds more than 5% of the shares

AS Tallinna Moekombinaat is not involved in any court or arbitration proceedings which may have a significant effect on the business activity of the company (there are no court or arbitration proceedings).

AS Tallinna Moekombinaat and the Issuer have not any valid agreements.

AS Tallinna Moekombinaat supervisory council members are: Ernesto Preatoni, Emanuele Bozzone, Paolo Michelozzi. AS Tallinna Moekombinaat management board members are: Allan Remmelkoor, Kristjan Kask, Ervin Nurmela.