Construction, Estonia, Mergers and take-overs, Real Estate

Magasini 29 was founded by Eston Ehitus and EKE Invest. For the 34% shareholding Eston Ehitus contributed 13,600 kroons. The rest 66% was contributed by EKE Invest.

At the time of founding Magasini 29, both Eston Ehitus and EKE Invest were the shareholders of Crislivinca with 34% and 66% shareholding respectively, informs LETA.

Magasini 29 was established with the purpose that a notional part of a land plot in center of Tallinn Magasini Street and liabilities related to that, extracted in course of dividing up Crislivinca, to be placed in there. Crislivinca's assets and liabilities were then divided. After that Eston Ehitus and EKE Invest exchanged their shareholdings in Magasini 29 and Crislivinca. Parties wished for the exchange due to changes in their investment strategies compared to previous periods.

Magasini 29 activity is project based real estate development on a land plot, situated in Tallinn Magasini 29. At the moment the development activities have not begun. Share capital of the company is 40,000 kroons.

Crislivinca's activities relate to real estate development. At the time of exchange of shares its main activity was selling apartments in residential building in Magasini 29a. Share capital of the company is 100,000 kroons.

The transaction does not have material economical effect on the activities of Nordecon International Group and does not qualify as an acquisition of significant holding nor a related party transaction within the meaning of "Requirements for Issuers" of the NASDAQ OMX Tallinn Stock Exchange regulations. The members of the supervisory board and management board of Nordecon International do not have any personal interests in the incorporation of the company.

Nordecon International is a group of construction companies whose core business is general contracting and construction management in the construction of buildings and infrastructures in Estonia, Lithuania and Ukraine. In addition, in Estonia our companies act as independent contractors in road construction and maintenance, environmental engineering, the assembly of reinforced concrete elements, and the performance of cast-on-site concrete works. Currently Nordecon International Group employs nearly 750 people. Since 18 May 2006, the company's shares have been quoted in the main list of the NASDAQ OMX Tallinn Stock Exchange.