AS ESTIKO

ANNOUNCEMENT

20.04. 99

 

AS ESTIKO MANAGEMENT BOARD’S COMMENTARY TO THE ARTICLE OF NEWSPAPER 

“POSTIMEES” 

 

The Management Board of AS Estiko would hereby like to comment on the 

allegations published in the 20.04.1999 article of newspaper 

“Postimees” named “Major Shareholders of Estiko Hellenurm and Seli 

Accuse Each Other of Affairs and Self-Interest” as AS Estiko would have 

made decisions, which are not in the best interests of shareholders. 

The member of AS Estiko Supervisory Board, Neinar Seli, regarded the 

disposal of AS Estiko’ subsidiary AS Hollender as harmful.

 

Upon approval of the reorganization plan of AS Estiko group in 1997, 

the Supervisory Board, including Kalju Hellenurm (Chairman), Valve 

Kirsipuu and Neinar Seli, made a decision to dispose AS Hollender for 

400 thousand EEK, based on the sales survey conducted by AS 

Lagerkvist&Partners. At the end of 1998, the Management Board of AS 

Estiko valued AS Hollender to 560 thousand EEK. At this price, the 

company could not find a buyer to AS Hollender(running two perfumery 

shops in Tartu) among the companies engaged in the retail sales of 

perfumeries. Only after being introduced with the situation, the 

Management Board made a proposal to the managing director of AS 

Hollender, Tarmo Hellenurm, to purchase the shares held by AS Estiko at 

the price of 560 thousand EEK, or 40% higher price than the Supervisory 

Board had set. There have been no changes in the Supervisory Board of 

AS Estiko since 1997, when the disposal of AS Hollender was decided 

upon. On behalf of the Management Board, I ensure that the Chairman of 

the Supervisory Board Kalju Hellenurm has not influenced the Management 

Board neither directly nor indirectly upon entering into the shares’ 

sale contract.

 

The member of the AS Estiko Supervisory Board Neinar Seli has referred 

to the purchase of Volvo S80 to AS Estiko as transaction unfavorable to 

AS Estiko. The aforementioned automobile (used by the Chairman of the 

Supervisory Board) was purchased by the company in accordance with the 

decision of the Supervisory Board. The purchase conditions of a new car 

were highly favorable to AS Estiko, since the retailer AS Info Auto 

agreed to buy the previous car (four years old Volvo) for approximately 

half of the acquisition cost, i.e. 210 thousand EEK, whereas the 

accounting residual value of the aforementioned car was only 96 

thousand EEK (acquisition cost of Volvo 850 was 478.7 thousand EEK). 

upon the purchase of the new car, the price difference of 392.5 

thousand EEK was paid to AS Info Auto, which was less than the 

acquisition cost of the previous car.

 

In the aforementioned article, the member of the AS Estiko Supervisory 

Board Neinar Seli has also mistaken with the salary figures of AS 

Estiko employees. The actual monthly salaries are as follows:

 

Chairman of the Supervisory Board AS Estiko group Kalju Hellenurm 34 

000 EEK,

Manager of AS Emajõe Ärikeskus Rait Abras 8 000 EEK,

Head accountant of AS Estiko Marju Abras 11 000 EEK.

 

All aforementioned salary figures are approved by the Supervisory Board 

of AS Estiko.

Since the member of the AS Estiko Supervisory Board Neinar Seli 

has signed the respective decision, and not expressed that he is of 

a different opinion, his discontent with the decisions of the 

Supervisory Board of AS Estiko is not understood by the Management 

Board of the group.

 

We also ensure that all activities of AS Estiko are held in the best 

interests of AS Estiko shareholders, and the Management Board has acted 

in accordance with the decisions of the Supervisory Board.

 

 

Jaanus Salum

Chairman of the Management Board