TSE to Continue Talks with NOREX, to Establish Take-Over Rules

17.09.1999 TLN

Tallinn Stock Exchange Press Release
September 17, 1999

The Supervisory Board of the Tallinn Stock Exchange (TSE) discussed the Exchange’s strategy towards co-operation with international stock exchange alliances at its meeting on Thursday, September 16.

The Supervisory Board resolved to authorise the TSE Management Board to continue negotiations aimed at joining of the NOREX Alliance. NOREX is an alliance formed between the Copenhagen Stock Exchange and the OM Stockholm Exchange, which is based on a common trading platform, cross-membership, single listing and a common set of rules. The goal of NOREX is the creation of one-stop shop for Scandinavian and Baltic financial instruments.

Gert Tiivas, Chairman of the TSE Management Board:
"Joining NOREX, which is currently the only working stock exchange alliance in Europe, would be a substantial qualitative step forward for the Estonian securities market. The TSE would gain access to a global distribution network, including all the largest Scandinavian as well as majority of the world’s leading securities firms.

The Estonian investors and Exchange members would benefit from a simplified and more cost-efficient access to a wide circle of financial instruments of all Scandinavian countries, enabling to trade at lower cost and better diversify their securities portfolios.

It would also provide Estonian listed companies with direct access to Scandinavian and European capital markets, thus creating better and cheaper financing possibilities.

I hope that the negotiations will be successful, so that we can decide already next year whether and at which terms we are willing to join the alliance. If everything goes well, we hope to become a part of the common Nordic financial products market shortly after the Oslo Stock Exchange, which decided to join the NOREX this summer."

Acknowledging the need to improve the protection of minority shareholders in Estonia, the Supervisory Board discussed the implementation of take-over rules by the TSE. The Supervisory Board resolved to base these rules on the respective European Union regulations, and directed the Exchange to work out relevant amendments to the TSE Rules and Regulations and proposals for amendments to the relevant Estonian laws.

Gert Tiivas:
"The purpose of these rules is to provide a transparent and regulated environment for take-overs in order to improve the protection of minority shareholders, and ensure legal certainty for the offeror and offeree. The take-over rules should significantly boost investor confidence in the securities market.

In addition to amending the TSE Rules and Regulations, it is important to close the gap in Estonia’s securities market legislation by bringing it in line with the European Union requirements and common practice."

Additional information:

Eva Palu
Head of Investor Relations Dpt
Tel: +372 64 08 840
e-mail: