AS Ekspress Grupp's Strategic Shareholding Decision
AS Delfi, a wholly owned subsidiary of AS Ekspress Grupp, has recently entered into a significant agreement involving its stake in the Latvian company, SIA Altero. This move reflects the group's ongoing strategy to optimize its investments in the evolving financial services sector.
Sale Agreement Details
The agreement, finalized with OÜ Aktiva Finance Group, marks a pivotal moment for AS Ekspress Grupp, offering a 25.48% shareholding in SIA Altero for EUR 4.2 million. The transaction will be completed shortly after the contract is officially signed, providing AS Ekspress Grupp with immediate cash flow.
Evaluation of Fair Price
To establish the fair market value of this shareholding, AS Ekspress Grupp utilized thorough assessments by its management team, accompanied by an analysis from the esteemed independent financial advisor, Ernst & Young Baltics. This methodical approach ensures the deal aligns with market expectations and supports the group's strategic financial planning.
Altero's Operations and Market Presence
SIA Altero is well-established in the Baltic markets, providing financial comparison and brokerage platforms across Latvia, Lithuania, and Estonia. With a user-friendly interface, the platform allows consumers and businesses alike to apply for various loans, including consumer loans, car leasing, and refinancing, by submitting a single application to multiple lenders.
Financial Performance
The performance metrics of Altero are promising, with a consolidated turnover reported at EUR 7.8 million and a net profit of EUR 1.8 million. This financial standing underscores the potential growth that AS Ekspress Grupp is tapping into with this transaction.
Impact of the Transaction
Upon completion, the transaction will lead to a EUR 2 million reduction in investments associated with affiliates for AS Ekspress Grupp. Moreover, the group anticipates recognizing a one-time net profit of EUR 2 million from the sale, which will aid in addressing a loan liability totaling EUR 1.8 million tied to the original acquisition of Altero.
Regulatory Considerations
While this transaction is substantial for the group, it does not qualify as a significant transaction under NASDAQ Tallinn Stock Exchange regulations. However, it is classified as a related party transaction, prompting transparency about any potential conflicts of interest among decision-makers. It's important to note that while some supervisory board members hold positions elsewhere, they remained uninvolved in the approval process for this transaction.
About AS Ekspress Grupp
AS Ekspress Grupp is recognized as a leading media organization in the Baltic region, engaging in a diverse range of activities that encompass digital media content production, as well as the publishing of various periodicals. Their extensive operations also cover electronic ticket sales and the organization of events and training sessions across the Baltics.
This well-rounded company has been active since 1989 and currently employs around 1,000 talented individuals, contributing significantly to the media landscape in Estonia, Latvia, and Lithuania.
Contact Information
Mari-Liis Rüütsalu
Chairman of the Management Board
+372 512 2591
mariliis.ryytsalu@egrupp.ee
Frequently Asked Questions
What is the value of the shareholding sold by AS Ekspress Grupp?
The shareholding was sold for EUR 4.2 million.
Who acquired the shareholding from AS Ekspress Grupp?
The shareholding was acquired by OÜ Aktiva Finance Group.
What financial metrics did SIA Altero report for 2024?
SIA Altero reported a turnover of EUR 7.8 million and a net profit of EUR 1.8 million for 2024.
What will be the financial impact of the sale on AS Ekspress Grupp?
The sale will result in a EUR 2 million profit and a reduction in investments in affiliates.
Is the transaction considered significant by the NASDAQ Tallinn Stock Exchange?
No, it does not qualify as a significant transaction according to the regulations.
