REVAL HOTELLIGRUPI AS

ANNOUNCEMENT

 

MERGER WITH THE SUBSIDIARY

 

On December 17 the Supervisory Board of Reval Hotelligrupi AS 

decided to direct the Management Board to start preparing the 

merger of Reval Hotelligrupi AS and AS Hotell Olümpia and conclude 

the required merger contract. According to the plans the merger 

will be carried out in year 2000.

 

The merger of the same group companies into one legal entity is in 

accordance with the strategy of Reval Hotelligrupp to operate as a 

single hotel management company, administrating hotels based on 

concluded lease or management contracts.

 

The merger of the companies gives Reval Hotelligrupp the following 

advantages:

 

- verification of job management and decrease in general expenses 

via merger of management and support functions;

- premise for more flexible labor usage;

- more effective management of working capital;

- decrease in the administration expenses of legal entities.

 

 

Feliks Mägus

Chairman of the Board

+372 62 74 444