Market announcement
Luterma
Category
Other price sensitive information
Date
26.01.2009 15:45:59
Title
Merger of production plants of subsidiaries
Message
AS Kalev Paide Tootmine's subsidiaries Tere AS and OÜ Põlva Piim Tootmine have concluded a contract under which OÜ Põlva Piim Tootmine transferred its milk stocking and processing company to Tere AS. The transaction forms a part of the dairy segment development plan of AS Kalev Group. Under the contracts of sale concluded in the autumn of 2008, AS Kalev's subsidiary AS Kalev Paide Tootmine acquired a 100% stake in Tere AS and OÜ Põlva Piim Tootmine. A merger agreement was concluded between AS Kalev Paide Tootmine and Tere AS on 30 October 2008. With the acquisition of OÜ Põlva Piim Tootmine by Tere AS, all dairy companies of the group have been incorporated under a single venture. The purchase price of OÜ Põlva Piim Tootmine was agreed at 312,932,000 kroons (20,000,000 euros). The balance of liabilities to credit institutions, as well as the balance of the inventories transferred by the seller to the buyer will be deducted from the final purchase price. The term of payment of the purchase price is 31 December 2009. According to the management of AS Kalev, the transfer of production will provide shareholders, investors and financiers a better overview of the development and economic activities of the dairy segment of AS Kalev. Allan Viirma Head of legal service AS Kalev 688 6616