Estonia, EU – Baltic States, Financial Services, Funds, Real Estate

Eften Real Estate Fund III has called an annual general meeting of shareholders for March 24, 2020. The AGM is to endorse the fund's annual report for 2019. The fund's net profit last year totaled 7.7 mln euros and undistributed profit stood at 18.4 mln euros as at year-end, the fund told the stock exchange. 

The supervisory board has made a proposal to shareholders to transfer 386,852 euros to the reserve capital and to distribute 3.5 mln euros or 82 cents per share in dividends. The size of the undistributed profit after the transfers will be 14.5 mln euros.

The list of shareholders entitled to the dividend is to be determined on April 8, 2020 as at the end of the working day of the registrar of the settlement system of the fund’s securities. The date of change in the rights is April 7, 2020. The dividend will be paid to shareholders on April 10, 2020 by way of bank transfer to the shareholder’s bank account.

The supervisory board also made a proposal to shareholders to approve a merger agreement concluded between Eften Real Estate Fund III AS and Eften Kinnisvarafond AS on Jan. 14, 2020. The merger has been approved by the depositaries of both funds. Rights and obligations will arise under the merger agreement only after the merger agreement has been approved by the general meetings of shareholders of both funds. 

The completion of the merger is subject to authorization by the Financial Supervision Authority, for which the fund manager has submitted an application to the FSA.

In the course of the merger, the business name of Eften Real Estate Fund III AS will be amended, and the fund will continue operations under the business name Eften Real Estate Fund AS. In order to amend the business name, the articles of association of Eften Real Estate Fund III AS have to be amended.

Furthermore, the supervisory board made a proposal to the AGM for an increase of share capital and listing of all newly-issued shares on the main list of Nasdaq Tallinn Stock Exchange.

A further proposal of the supervisory board is to extend the authorizations of the members of the supervisory board Arti Arakas, Sander Rebane, Siive Penu and Olav Miil for the next five years, meaning until May 6, 2025.