AS ESTIKO

ANNOUNCEMENT

26.04.1999

 

COMMENTARY TO THE 23.04.1999 ARTICLE OF NEWSPAPER “ÄRIPÄEV”, “KALJU 

HELLENURM WON”

 

In the aforementioned article of “Äripäev”, the member of AS Estiko 

Supervisory Board, Neinar Seli, questioned the transactions of AS 

Estiko with treasury shares, which I will hereby comment on behalf of 

the Management Board.

 

The consolidated and audited balance sheet of 1998 of AS Estiko 

included as of 31.12.1998 treasury shares worth of 1 087 110 EEK. The 

major share of the treasury share purchase was based on decision number 

63 of the AS Estiko Supervisory Board meeting from 22.06.1998, which 

regarded the acquisition of treasury shares at stock exchange price. 

The aforementioned decision of AS Estiko Supervisory Board was signed 

by all members of the AS Estiko Supervisory Board. The purpose of the 

acquisition of treasury shares was to use them as convertible shares to 

acquire state-owned shares in Estiko Investeeringute AS (subsidiary of 

AS Estiko). To determine the rate of conversion, the Ministry of 

Economic Affairs had ordered an expertise from the Finance and 

Investment faculty of the University of Tartu, based on which the 

respective treasury share purchase was planned. 

 

As a result of the aforementioned decision, AS Estiko acquired on 

07.07.1998 with the stock exchange transaction 71 400 ordinary shares 

of AS Estiko in nominal value of 714 000 EEK, at acquisition price of 

14.00 EEK per share, which was in accordance with the prices on the 

stock exchange on that day. The aforementioned transaction was not 

concluded between related parties.

 

According to the resolution of the 17.11.1998 extraordinary general 

meeting of AS Estiko shareholders, the company carried through a stock 

dividend issue, which also increased the amount of treasury shares on 

the company’s balance sheet by 362 400 EEK. The remaining share of the 

balance of treasury share account on the annual balance sheet are the 

B1-preferred shares (repurchased at nominal value), which pursuant to 

article 3.4.1. of the Articles of Association of AS Estiko should be 

repurchased at nominal value in case the shareholder wishes so.

 

Igor Sada

Financial Director of the Group

Tel. +372 74 76 916