Market announcement
AS MERKO EHITUS
Category
Other price sensitive information
Date
28.11.2008 10:55:17
Title
The court recognised the right of Merko Ehitus to participate in public procurement and rely on the pre-merger references
Message
On 27 October, the Tallinn Circuit Court ruled that AS Merko Ehitus was eligible to participate in public procurements and rely on its pre-merger sales figures and practice. By its ruling, the Tallinn Circuit Court reversed the decision of the Appeal Committee at the Public Procurement Office that disqualified Merko Ehitus from the public procurement for military port organised by the Ministry of Defence. By virtue of the contested decision the Ministry of Defence had declared AS Merko Ehitus' bid of EEK 67.8 million the winning bid. The court held that the post-merger AS Merko Ehitus had adequate economic capacity, i.e. business, financial, technical and professional competence to perform a procurement contract and was entitled to rely on the sales figures and practice of the former Merko Ehitus for the purpose of the procurement procedure. According to the court the date of registration of a company formed in the course of the merger and the principles of reporting the merger in corporate accounts were irrelevant in the context of public procurements. The ruling of the Tallinn Circuit Court may be appealed in cassation within 30 days from delivery of the ruling. Alar Lagus Member of the Board +372 6 805 109 alar.lagus@merko.ee