AS ESTIKO

ANNOUNCEMENT

23.02.99

 

AS ESTIKO PURCHASED A HOLDING IN A STRATEGIC ENTERPRISE

 

AS Estiko purchased a 30% minority shareholding in AS Estiko-

Raamex (main field of activity: printing of wrapping materials); 

after the transaction, Estiko group owns 100% of the respective 

company. AS Estiko-Raamex is a subsidiary of AS Estiko-Plastar, 

and it is considered to be a strategic production company of the 

group. The volume of 1999 forecasted net sales of AS Estiko-

Raamex is 16.1 million EEK, and net profit 444 thousand EEK.

 

On February 18, AS Estiko sold 97% of the shares of its 

subsidiary AS Remark (field of activity: catering and culinary), 

i.e. all shares of this company held by AS Estiko. The sale of AS 

Remark was a part of a reorganization process of the group, which 

started in the beginning of 1998, and the purpose of which is to 

simplify the structure of the group, as well as to sell the 

companies which do not conform with the strategic development 

plan of the group. AS Estiko confirms that the transactions were 

not made with related persons, as determined in the Rules and 

Regulations of the Tallinn Stock Exchange.

 

The changes in the companies of AS Estiko group are in accordance 

with the reorganization plan of the structure of AS Estiko. In 

addition to the above companies, AS Estiko sold at the end of the 

last year its shareholdings in AS Hollender and Milleenia Valduse 

AS.

 

According to the development plan, the primary fields of activity 

of AS Estiko affiliated group are production of wrappers and 

administration of the real estate objects related to that.

 

 

Ilona Leib

Information Manager of Group

Tel +372 747 3649