ASA KINDLUSTUS AS

ANNOUNCEMENT

01.07.99

 

ABOUT SALE OF MAJORITY SHAREHOLDING IN ASA KINDLUSTUS AND AB 

ELUKINDLUSTUS

 

According to the 17.06.1999 agreement between a foreign investor 

and major 

shareholders of ASA Kindlustus AS and AB Elukindlustuse AS, the 

aforementioned foreign investor will acquire majority shareholdings 

in both 

insurance companies. According to the agreement, all activities 

related to 

the transaction should have taken place within the period of 14 

days, after 

which the company was to be free to publish the name of the 

investor and 

transaction details.

 

According to the agreement, the terms for acquisition of majority 

shareholding included a stipulation for replacement of insurance 

technical 

reserves of ASA Kindlustus AS ja AB Elukindlustuse AS, which are 

currently 

not in correspondence with legal provisions. All other aspects of 

the 

agreement are met as of today, with the exception of ongoing 

negotiations 

between the investor and Insurance Inspectorate to determine the 

terms and 

schedule for replacement of insurance technical reserves. 

 

The foreign investor desiring to acquire majority shareholding in 

ASA 

Kindlustus AS and AB Elukindlustuse AS has made a proposal to the 

current 

major shareholders of the companies to extend the 14-days period 

for 

meeting the terms of the agreement, as settled in the 17.06.99 

agreement. 

The respective decision will be made after consulting with the 

Insurance 

Inspectorate.

 

Additional information about the transaction will be published via 

the 

Tallinn Stock Exchange information system immediately after the 

aforementioned agreement is made.

 

 

Aleksandr Zaporozhtsev

ASA Kindlustus AS

Director of Financial Department

Tel. + 372 2 42 52 98