REVAL HOTELLIGRUPI AS

ANNOUNCEMENT

29.11.99

 

AGREEMENTS CONCLUDED

 

On Friday, 26.11.1999 the representatives of Reval Hotelligrupi AS 

and AS ETK Hotell signed several agreements, which contribute to 

Reval Hotelligrupi AS exit from the real estate development 

business, and concentration on hotel management. The concluded 

agreements should be viewed as a whole rather than separate 

transactions. The following transactions will be concluded based on 

the aforementioned agreements:

 

1.Reval Hotelligrupi AS bought from AS ETK Hotell all current and 

non-current assets, except buildings located at Narva St. 7c and 

Narva St. 9c at price of 27 million EEK. Assets will be transferred 

by 30.11.1999; payment will be made within 15 days.

2.Reval Hotelligrupi AS bought from AS ETK Hotell all rights to 

trademarks Central, Primavera and Cafe Compass, which are owned by 

AS ETK Hotell, at price of 2 million EEK. The aforementioned rights 

will be transferred on 30.11.1999; payment will be made within 15 

days.

3.ETK bought from Reval Hotelligrupi AS viimasele kuuluvad 20% 

shareholding in AS ETK Hotell at price of 12 million EEK. The 

ownership right of the shares will be transferred on 30.11.1999; 

payment will be made within 15 days.

4.Reval Hotelligrupi AS will rent from AS ETK Hotell hotel 

buildings located at Narva St. 7c and Narva St. 9c with total area 

of 9,485 m2. Annual rental fee is 8.25 million EEK; term of 

agreement ends at 31.12.2010.

 

The aforementioned transactions do not impact significantly the 

financial results of Reval Hotelligrupi AS in year 1999. 

Reval Hotelligrupi AS consolidated net sales will increase in year 

2000 by 59 million EEK and operating profit by 20 million EEK as a 

result of these transactions. 

 

 

Feliks Mägus

Chairman of the Management Board

Reval Hotelligrupp

Tel. +372 62 74 444