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CORRECTION: Contemplated changes in substantial shareholding

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In the stock announcement "Contemplated changes in substantial shareholding",
published on 03/02/2021, AS Tallinna Vesi corrects the number of shares to be
acquired by OÜ Utilitas in the transaction as well as the number of current
shares of City of Tallinn and, in addition, the prerequisites of the tender
offer. The corrections have been highlighted in the announcement.

AKTSIASELTS  TALLINNA  VESI  informs  about  the  contemplated  changes  in  the
structure of shareholders with substantial shareholdings.

On  3 February 2021, the  City of  Tallinn and  United Utilities  (Tallinn) B.V.
informed  AKTSIASELTS TALLINNA VESI  that the City  of Tallinn, United Utilities
(Tallinn)  B.V., United Utilities PLC and  Osaühing Utilitas are entering into a
share  sale and purchase agreement whereby United Utilities (Tallinn) B.V. sells
in  total 7,060,870 A-shares in AKTSIASELTS TALLINNA VESI to the City of Tallinn
and  Osaühing Utilitas in equal  parts at a price  of 14.20 euros per share (the
"Transaction").  As a result of  the Transaction, the City  of Tallinn will hold
10,469,565 A-shares  in  AKTSIASELTS  TALLINNA  VESI and 1 B-share (representing
52.35% of  the share capital of AKTSIASELTS TALLINNA VESI) and Osaühing Utilitas
will  hold 3,530,435 A-shares in AKTSIASELTS TALLINNA VESI (representing 17.65%
of the share capital of AKTSIASELTS TALLINNA VESI).

The  share sale and purchase  agreement shall take effect  in its entirety as of
the  approval of the Transaction by the  Tallinn City Council. The completion of
the  Transaction is also subject to the  receipt of the approval of the Estonian
Competition  Authority. The estimated  completion of the  Transaction shall take
place in March 2021.

Following the completion of the transaction and the necessary approvals from the
Financial  Supervision Authority, the City of Tallinn and Osaühing Utilitas will
jointly undertake a mandatory tender offer in respect of shares held by minority
shareholders  of AKTSIASELTS TALLINNA  VESI. Terms of  the tender offer shall be
announced once approved by the Financial Supervision Authority.

According  to the  Management Board  of AS  Tallinna Vesi  the conclusion of the
share  sale  and  purchase  agreement  does  not  have  a material impact on the
business  activities nor the economic results of the Company as the Company will
continue  carrying  out  its  usual  business  activities and the share sale and
purchase  agreement does  not bring  about the  changes to  the provision of its
services.

The  buyer  Utilitas  is  the  largest  district heating company and producer of
renewable  energy  in  Estonia.  The  company  manages 550km of district heating
pipelines  and supplies  heat to  174 000 households in  eight Estonian cities -
Tallinn,  Maardu, Keila,  Rapla, Haapsalu,  Kärdla, Jõgeva  and Valga.  In 2020
Utilitas  produced  1,7 TWh  of  heat  and  394 GWh  of  electricity.  Utilitas'
consolidated  sales  revenue  in  2020 was  127 million  euros and the volume of
assets  was 386 million euros. The company  is owned by the European Diversified
Infrastructure  Fund II (85%), the assets of  which are managed by First Sentier
Investors and the companies of OÜ Utilitas' board members (15%).

As at the date of this release the buyer Tallinn City owns 6,939,130 A-shares of
AS Tallinna Vesi and 1 B-share and the buyer OÜ Utilitas does not own any AS
Tallinna Vesi shares.

AS Tallinna Vesi will give additional information, when available.


Kristi Ojakäär

AS Tallinna Vesi

CFO

(+372) 62 62 262

[email protected] (mailto:[email protected])