AS MERKO EHITUS

ANNOUNCEMENT

18.06.99

 

 

The Board of AS Merko Ehitus makes at the Extraordinary General 

Meeting on the 5th of July 1999 to the shareholders of AS Merko 

Ehitus the proposal to dispossess 100% participation in the 

subsidiary company E.L.L. Kinnisvara AS.

AS Merko Kinnisvara was established in August 14, 1997 as the 

100% subsidiary company of AS Merko Ehitus. Since July 6, 1998 

the business name of the company has been E.L.L. Kinnisvara AS.

The main fields of activity of E.L.L. Kinnisvara are the 

development of the real estate projects and the management of the 

real estate. 

 

FINANCIAL DATA OF E.L.L. KINNISVARA AS 

 

In EEK                            1997         1998   1999 3 months

                                                                 

Net sales                            0   19 348 442     2 791 285

Total revenue                        0   80 576 086    15 252 760

Net profit                     211 257    1 874 713    -4 046 839

Accounting value in the     10 154 179   88 842 048    84 517 855

balance sheet of AS Merko Ehitus

Owners’ equity              10 211 257  102 080 016    98 037 397

Total assets                10 285 483  141 510 958   133 771 801

 

 

 

THE GOAL AND THE METHODS OF DISPOSSESSION

The Board of AS Merko Ehitus regards it expedient to dispossess 

the participation in E.L.L. Kinnisvara AS in order to separate 

the activities of real estate development and to focus on the 

main activity - construction. 

According to the standpoint of the Board of AS Merko Ehitus 

construction and real estate development have very different 

business nature and need of capital. Arising from this investors 

evaluate the mentioned activities differently.  Because of that 

the separation of real estate development from the construction 

should have a positive impact on the efficiency and through this 

to the value of both companies.

AS Merko Ehitus is aiming to work out the proposal of the 

dispossession of the 100% shares of E.L.L. Kinnisvara AS in the 

way that would guarantee the right to acquire the shares of 

E.L.L. Kinnisvara AS on the equal basis to all the shareholders 

of AS Merko Ehitus proportionally to their participation in AS 

Merko Ehitus.  The proposal contains the possibility to 

dispossess the fore-mentioned rights to acquire the shares of 

E.L.L. Kinnisvara AS, therefore the option either to participate 

beside construction also in the real estate development or to 

participate only in construction will be given to each 

shareholder. 

AS Merko Ehitus will compile a detailed Information Memorandum, 

which gives a thorough overview of E.L.L. Kinnisvara AS and the 

mentioned proposal of dispossession of the shares.  The 

Information Memorandum will be manifested on the Extraordinary 

General Meeting.

The final decision on the method of the dispossession will be 

made by the Council of AS Merko Ehitus after the decisions of the 

Extraordinary General Meeting on the 5th of July 1999. AS Merko 

Ehitus announces to the stock exchange about the method of the 

dispossession and arranges the press conference latest on the 7th 

of July 1999.

 

CONSULTANTS 

 

AS Merko Ehitus has chosen Balti Cresco Investment Group and Law 

Office Lepik & Luhaäär to be the consultants of the transaction.

 

Ülo Metsaots

Member of the Board, Financial Director

Tel. +372 6105 105