Norma to disappear from Tallinn stock exchange

Although it is not by any means a done deal, the intention of Norma’s parent group Autoliv to buy out small shareholders from Norma shows that another company could soon be delisted from Tallinn Stock Exchange.

Today’s Äripäev writes that Autoliv announced that its offer applies only if it manages to get 90% of shares of Norma. It already owns 51% of the company  and claims that it has agreement to acquire another 26%, bringing the level to 77%.
At present Autoliv owns 51% of the company, foreign investor own 31.8% and Estonian investors own 17.2%.

Small shareholders who own about 200 million kroons worth of Norma shares claim that Autoliv offer of 92.3 kroons a share is too low, especially since Norma has more than 600 million kroons in cash that Autoliv needs to buy the outstanding shares. In other words, Autoliv is buying Norma for Norma’s own money.

Another reason why small shareholders are angry is that Norma’s management board has proposed not to pay out any dividends for last year. Norma has been one of the best dividend payers on the Tallinn Stock Exchange.

Read more from BBN

Eesti Energia IPO may come in June

The initial public offering of shares of Estonian state power company Eesti Energia may take place in June, according to a representative of the ministry of economic affairs.

According to the TV news programme Aktuaalne Kaamera, this requires that the government approves the IPO plan in May at the latest.

The government has also been considering an alternative to IPO, ie to raise the company’s equity to finance investments of as much as 20 billion kroons in coming years for the construction of new energy units and increasing the share oil production capacity.

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“It’s buying panic on Tallinn stock exchange”

Share prices in Tallinn have been growing for eight consecutive days and OMX Tallinn Index is now at its highest level in 15 months, mainly buoyed by growing speculation that Estonia is on its way to the euro zone.

Yesterday’s Äripäev writes that the OMX Tallinn index has jumped 24% this year, making it the world’s best- performing equity market and extending last year’s 47% advance. In one year, share prices in Tallinn have increased 60%.

Some professionals already warn about overconfidence of investors. Mehis Raud, fund manager in Trigon, said that those investing right now in stocks for speculative purposes are taking a huge risk. “Markets have going up very rapidly and the results of companies and news from foreign markets may not be so strong,” he said. 

Raud warned that one should look out for companies with high debt because potential new share issues could dilute the value of holdings.

Raud said that the share price rally of recent days was buying panic. “On the one hand you have institutional investors who have revalued their risks and want to acquire large holdings before the euro decision comes. On the other hand you have local investors who are withdrawing deposits and investing them in stocks.”

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Value of listed companies grew 32 pct

The market capitalisation of the companies listed on the Tallinn stock exchange grew 32% during 2009 to 28.94 billion kroons.
During 2008, the companies’ market capitalisation dropped 2.93-fold to 21.96 billion kroons.
The star performer in 2009 was Harju Elekter, which saw the value of its share more than double.
Retailer Tallinna Kaubamaja soared 74%, builder Merko Ehitus 79% and Olympic 57%.
Losing the most, or 37% of its value, was the garment company Baltika.
The OMXT index put on 47.21% during the year to finish at 404.58 points. The Lithuanian market showed almost equal performance with a 46.04% rise in the index to 261.77 points.
The OMXR index of the Riga stock exchange moved up by just 2.82% and the joint Baltic index finished the year 37.83% higher at 314.42 points.
The total turnover of the Tallinn stock exchange generated in 84 547 transactions during 2009 was 4.17 billion kroons.

Source: Estonian Review

Government endorses sale of holding in Eesti Telekom

The Estonian government Thursday decided to give its consent to the sale of shares in Eesti Telekom at 93 kroons (EUR 5.94) per share.
Eesti Telekom has also convened a general meeting of shareholders in order to decide the payment of additional dividends of nearly 7 kroons per share.
It is also planning to endorse for three years a dividend policy according to which Eesti Telekom will pay out in dividends in the years 2010-2012 the whole net profit over the preceding period, the government communications office said.
In considering its decision, it was decisive that the Estonian state had no strategic interest of continuing as shareholder in Eesti Telekom and in 2009 the state would be paid more than four billion kroons, which would contract the loan need of the country and improve the government sector budget balance by 518 million kroons.
It is also important for the state to ensure in the next few years a guaranteed inflow of income tax that will be enabled by the agreed-on guaranteed dividend policy.
The Estonian government currently has a 24% and the Estonian Development Fund a 3% holding in Eesti Telekom.

Source: Estonian Review

Laar: Eesti Energia will be listed

Mart Laar, the chairperson of Pro Patria and Res Publica Union (IRL) said at the conference Business Plan that listing Eesti Energia has been decided, reports.

“Officially not,” Laar answered to Meelis Mandel’s question if he heard correctly and Eesti Energia will be listed.

Source: BBN

Estonia will collect 3.5 bEEK from the sale of Eesti Telekom

The state will improve its budget balance by EEK 518 mln already this year, but not all small shareholders and analysts are pleased about the state accepting the offer, Äripäev reports.

Yesterday the Ministry of Finance announced that the state has agreed in principle to sell its holding in Eesti Telekom. The price for the holding would be EEK 93 per share plus EEK 964 million from the retained earnings as an additional dividend of EEK 6.99 per share of Eesti Telekom and approve a dividend policy to distribute profits retained during the business years 2009 till 2011.

“Dividends are very important for the budget balance. That’s why we agreed on extraordinary dividends, on which the state also gets income tax,” Jürgen Ligi, the Minister of Finance said.

Estonia will collect EEK 3.5 bln from the sale of Eesti Telekom.

“The income of EEK 3.5 bln will not improve the budget balance, but increases liquidity and saving on loan interests,” Ligi said.

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Kalev adopts new name – Luterma

The listed Estonian food and real estate group AS Kalev has adopted AS Luterma as its new business name.
The extraordinary general meeting of shareholders that endorsed the change also approved corresponding amendments in the statutes of association, Kalev told the stock exchange.
At Thursday’s general meeting 85.43% of the company’s registered capital was represented.
Oliver Kruuda, the majority shareholder of Kalev, has previously said the name change arises from the wish to leave the name Kalev fully to the confectionery factory that is part of the Kalev group.
AS Kalev earlier this week filed for delisting from the Tallinn stock exchange.

Source: Estonian Review

Starman delisted

On March 5, 2009, the Listing and Surveillance Committee of NASDAQ OMX Tallinn Stock Exchange decided to satisfy the application of Starman AS from January 22, 2009, and to delist its shares from the Main List of TSE starting from the next day after the Estonian CSD has transferred the minority shares to the majority shareholder – Baltic Moontech Investments Holding AS.

On February 25, 2009, the extraordinary general meeting of shareholders of Starman decided to approve the takeover of shares from the minority shareholders by Baltic Moontech Investments Holding AS against a fair monetary compensation in the amount of EEK 89,96795 (EUR 5,75) per share. After the takeover of shares, Baltic Moontech Investments Holding AS will be the only shareholder.

Source: BBN

Kalev filed delisting request

AS Kalev submitted on February 23rd, 2009 to NASDAQ OMX Tallinn Stock Exchange an application for delisting AS Kalev shares. 

Management estimated that failure by Alta Capital Partners to execute food industry enterprise sales agreement concluded on 2007 to AS Kalev does not allow to execute business plans planned on fall 2007. Amongst other things AS Kalev does not see the opportunity to comply with freefloat requirement set by the rules of Tallinn Stock Exchange.

Resolution on satisfying or rejecting the delisting request will be made by Stock Exchange within three months as of submitting application of delisting request, by exception of the rules of Tallinn Stock Exchange resolution may also be made during six months.

Source: BBN


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