AS EMV

ANNOUNCEMENT

03.02.99

 

 

SALE OF SUBSIDIARY E-PROFIIL 

 

AS EMV sold on 02.02.99 its 62,5% shareholding in subsidiary AS 

E-Profiil to one of the leading Estonian filling material 

production company AS GLASKEK. The cost of the transaction was 

500,000 EEK. As a result of the transaction, all shares 

previously owned by AS EMV were sold at nominal price.  

 

AS EMV strategy to increase the efficiency of the group’s 

activities did not foresee large investments in the secondary 

fields of activity in the near future, including the 

investments in the subsidiary E-Profiil. Hence the subsidiary 

could not independently meet the goal set upon establishment of 

the company to acquire 15-20% share of the aluminum-profile 

market in Estonia. In the conditions of declining construction 

market and tough competition, AS E-Profiil as a small producer 

would have experienced great difficulties achieving the market 

share and turnover volume necessary to operate efficiently.

 

The unaudited 1998 turnover of AS E-Profiil amounted to 11 

million EEK; the loss was 0.7 million EEK, of which EMV group’s 

share (consolidated based on the equity method) was 0.4 million 

EEK. 

 

 

Marko Kaha

Financial analyst

tel. +372 640 3310