1999.05.07, Tallinna Farmaatsiatehas, TLN

TALLINNA FARMAATSIATEHASE AS

ANNOUNCEMENT

07.05.99

 

REPRESENTATION AGREEMENT CONCLUDED IN 1998

 

Pursuant to the representation contract concluded between TFT AS and 

Magnum Group in January 1998, TFT AS authorized Magnum Grupp AS to act 

on its behalf and account to privatize TZF Polfa. The aforementioned 

agreement covered the participation costs, guarantee expenses, 

remuneration of experts, cost of analyses and market researches, etc. 

In regard to this agreement, TFT AS made a prepayment of 13 720 000.- 

EEK.

 

Magnum Group has presented to TFT AS an expense report and invoices for 

total of 12 190 022.- EEK. According to the evaluations of the 

company’s management, these expenses related to privatization of Polfa 

are justified and fairly reflected in the company’s annual reports.

 

There is a confidentiality agreement concluded in regard to the 

aforementioned privatization transaction, hence TFT AS has not been 

entitled to issue specific information regarding the final results of 

privatization of Polfa up to now. TFT AS has made an inquiry regarding 

the privatization results of Polfa. As soon as the company receives a 

formal document, TFT AS will announce the content of this document to 

the shareholders and general public.

 

 

Arno Kaseniit

Member of the Management Board

Tel +372 61 20 201