EESTI ÜHISPANK 

ANNOUNCEMENT

28.05.1999

 

COMMENTARY TO 27.05.99 ARTICLE OF "ÄRIPÄEV" 

"IFC WILL NOT WAIVE ITS OPTION ON ÜHISPANK SHARES"

 

On 29.01.1999, AS Eesti Ühispank and International Finance Corporation 

(IFC) concluded loan contract for EEK 259 million, and option contract,

according to which IFC is entitled to subscribe for up to 7 million 

shares of AS Eesti Ühispank. AS Eesti Ühispank and IFC agreed that in 

case IFC chooses to realize the respective option, the aforementioned

loan contract will be ended.

 

On 26.11.1998, the extraordinary general meeting of AS Eesti Ühispank

shareholders decided to issue 7 million shares to IFC.

 

Pursuant to §343 section 4 of the Commercial Code, the Management Board

is obligated to submit an application to register the increase of share 

capital in the Commercial Regicter within 6 months after the respective 

resolution is made.

Duration of the option period as settled in the option contract, proceeds 

from the respective provision of the Commercial Code. IFC did not inform 

the counterparty about its decision to realize the option, hence AS Eesti

Ühispank did not register and announce the issue of 7 million shares.

 

As of today, the option contract is ended. AS Eesti  Ühispank and IFC

have not discussed concluding of new option contract.

 

Additional information:

 

Margus Schults

Asepresident

Tel.: +372 6656 600