AS MERKO EHITUS

ANNOUNCEMENT

14.07.99

 

AS MERKO EHITUS ANNOUNCEMENT CONCERNING THE PROPOSAL OF MERKO GROUP 

 

THE PROPOSAL OF MERKO GROUP TO THE OWNERS OF THE CALL OPTIONS OF 

E.L.L. KINNISVARA

 

With reference to the decision of Merko Ehitus to issue the call 

options for acquirement of the shares of E.L.L. Kinnisvara to the 

shareholders of Merko Ehitus, herewith Merko Group makes a proposal 

to all the shareholders of Merko Ehitus for all of the E.L.L. 

Kinnisvara call options at their possession with the price of 6.45 

EEK per one call option.  The proposal is valid from 19th to 30th 

July 

1999.

 

The value of the call option is the difference between the value of 

E.L.L. Kinnisvara in the Balance Sheet of Merko Ehitus 8.45 EEK per 

option and the exercise price of the call option 2 EEK, i.e. 6.45 

EEK per option.

 

The call options can be dispossessed through mediation of the 

account 

operators of ECDS.  The objects of the transaction are the call 

options of E.L.L. Kinnisvara. The party who sells is the 

shareholder 

of Merko Ehitus and the party who buys is Merko Group.

 

The shareholder of Merko Ehitus who wants to dispossess the call 

options of E.L.L. Kinnisvara belonging to him must submit in the 

bank 

where its security account is opened an application to sell the 

options.  Applications can be submitted from 19th to 30th July 

1999.

 

The following items must be noted on the application:

- security - 'call option of E.L.L. Kinnisvara, ISIN code 

EE3901006140'

- type of transaction - 'DVP'

- price of transaction - 'EEK 6.45'

- transaction counterpart - 'Merko Grupp' 

- counterpart’s account operator - 'ECDS'

- transaction value date - 23.07.99 or 3.08.99

 

The seller of call options can choose either 23.07.99 or 03.08.99 

to 

be the transaction value date. The value date of sell orders 

entered 

before 21.07.99 (incl.) can be either 23.07.99 or 03.08.99. The 

value 

date of sell orders entered as of 22.07.99 must be 03.08.99, since 

the sell orders entered on banking day preceding the transaction 

value date will not be settled on the following day.

 

The securities exchange transaction will take place on the 

transaction value date and money will then be transferred to the 

bank 

account of Merko Ehitus shareholder.

 

Dispossession of E.L.L. Kinnisvara call options is limited to the 

extent provided in the E.L.L. Kinnisvara information memorandum. 

The 

shareholders, who have acquired shares of Merko Ehitus after 8:00 

AM 

on 19.07.99, or persons other than shareholders of Merko Ehitus, 

who 

have acquired call options, are not entitled to dispossess E.L.L. 

Kinnisvara call options to Merko Grupp on conditions provided 

above.

 

 

Ülo Metsaots

Member of the Board, Financial Director

+372 6 105 110