AS ESTIKO

ANNOUNCEMENT

21.12.98

 

 

AS ESTIKO SIMPLIFIES THE STRUCTURE

 

AS Estiko group simplifies its structure in order to concentrate on the 

development of significant domains. Last week AS Estiko sold its 49% 

shareholding in Milleenia Valduse AS, which administrated the central 

department store of Tartu, and 100% shareholding in AS Hollender, which 

is engaged in the retail sales of perfumes.

 

AS Estiko owns a story in Tartu Kaubahall 

Last week it sold 49% of the shares of Milleenia Valduse AS for the 

price of 3.0 million EEK, and purchased 2000 m² 0-floor (1. floor from 

the level of Küüni street) premise in Tartu Kesklinna Kaubahall for 10 

million EEK. The accounts will be settled in the amount of 3 million 

EEK. The difference between the transactions will be paid to the city 

of Tartu based on the payment schedule, taking over the liabilities of 

Milleenia Valduse AS to the city of Tartu in the amount of 7 million 

EEK. Value of an individual portion belonging to a property of Tartu 

Kaubahall was set as a collateral. The liabilities of AS Estiko to the 

city of Tartu, which are associated with Milleenia Valduse AS, 

decreased by 12 million EEK.

 

In 1999, AS Estiko intends to build the 0-floor and open SPAR grocery. 

The volume of the necessary investments is not known yet.

 

AS Estiko sells the companies of insignificant fields of activity.

Last week AS Estiko sold 100% of the subsidiary AS Hollender shares 

with the balance sheet value of 0.56 million EEK. The purchase amount 

will be paid to AS Estiko based on the payment schedule, and a 

collateral was set in order to secure the liabilities. AS Hollender is 

engaged in the retail sales of exclusive perfumes in Tartu, and is one 

of the subsidiaries established during first year of operations of AS 

Estiko, 1991. AS Hollender was sold since AS Estiko was unwilling to 

diffuse the group’s structure with insignificant fields of activities 

(such as retail sales of perfumes) from the point of view of 

development perspectives. 

 

The changes taking place in the companies of AS Estiko group are in 

accordance with the structure arrangement plan approved in the 

beginning of the current year. According to the development plan, the 

priority domains of AS Estiko affiliated group are production of the 

packages, administration of the real estate and  SPAR retail sales.

 

 

Ilona Leib

Information manager of the affiliated group

Tel. +372 747 3649