TALLINN STOCK EXCHANGE

ANNOUNCEMENT

 

TSE SUPERVISORY BOARD DECISIONS

 

The Supervisory Board of the Tallinn Stock Exchange (TSE) held its 

meeting on Friday, 10.12.1999.

 

1. The Supervisory Board resolved to add a chapter "Take-over 

Rules" to TSE Rules and Regulations. TSE has also made proposals to 

amend the Securities Market Act to include take-over rules. The 

Board will decide the date of which the TSE rules take effect based 

on the progress with the adoption of relevant legislative acts by 

the parliament, which is expected to take place in early 2000.

 

Take-over rules are based on the principles of the relevant 

European Union draft directive and they provide a regulatory 

framework for take-overs of listed companies. 

 

The rules aim to ensure transparency and legal certainty for 

minority shareholders, offerors and offerees, thus enhancing 

investor confidence in securities market as a whole.

 

The fundamental principle of the rules is to provide equal 

treatment to all shareholders in regard to offer conditions and 

information availability. A person obtaining a  controlling 

interest in the issuer (50% plus one vote) has an obligation to 

make a take-over bid to all other shareholders. 

 

2. The Supervisory Board authorised the Chief Executive of the TSE 

to sign the Letter of Intent with Scandinavian bourse alliance 

Norex. The LoI is scheduled to be signed in January after Board 

approvals from other parties are received. 

 

3. The Supervisory Board approved amendments to the chapter 

"Membership Rules" of the TSE Rules and Regulations to enable 

securities intermediaries from European Economic Area countries, 

and others with equivalent standards, to obtain remote membership 

status at the TSE. The requirement of the stock exchange members to 

own shares in TSE is waived for remote members. The amendments will 

be effective as of January 10, 1999.

 

The TSE has made proposals to amend the Securities Market Act so as 

to allow licensed securities intermediaries from these countries to 

obtain Estonian licenses in simplified order. 

 

 

Additional information:

 

Eva Palu

Head of Investor Relations Dept. 

Tel: +372 64 08 840