AS Harju Elekter purchased a majority holding in E

Estonia, 2017-03-30 07:41 CEST (GLOBE NEWSWIRE) -- AS Harju Elekter purchased an 80.5% holding in Energo Veritas OÜ, a company trading in electrical materials and equipment. The transaction was completed as at 29 March 2017, when monetary settlements were also made. According to the agreement and based on the fact that the transaction is not relevant for the purpose of the Stock Exchange Rules, the parties will not disclose the value of the transaction. After the transaction, the business operations of AS Harju Elekter Trade Group will be merged with Energo Veritas OÜ, who will continue as a subsidiary of the Group.

With the purchase of Energo Veritas OÜ and establishment of a trade unit operating as a subsidiary of the Group, the Group increases its market share in Estonia, notably expands its offered product range, and creates prerequisites for boosting the sale of the Group’s products in Estonia and the Baltic states. The company focuses primarily on project-based trading activity.

The former manager of the company, Kristo Reinhold, will continue as the head of the Group’s new subsidiary, Energo Veritas OÜ. The following persons were appointed to the Supervisory board of the company: Chairman of the Management Board of AS Harju Elekter Mr Andres Allikmäe, Member of the Management Board of AS Harju Elekter Mr Tiit Atso and Sales Director of AS Harju Elekter Elektrotehnika Mr Tiit Luman.

Energo Veritas OÜ is a company, established in 2015 and based on local capital, trading in electrical materials and equipment, offering technical advice, solution development and kitting in accordance with the client’s wishes as well as deliveries to construction sites. The company’s largest suppliers are most of the manufacturers of electrical materials or their representatives; the company also imports several products. The turnover of the company was 4.2 million euros in 2016, and the company employs 7 people.

After launching its activities in 1968, Harju Elekter Group has developed into a leading producer of MV/LV electrical and engineering devices in the Baltic countries and a known and respected manufacturer in Scandinavia. Harju Elekter’s main field of business is the development, manufacturing and sale of equipment necessary for the distribution and transmission of electric energy. The main business is supported by a sheet metal plant in Estonia and the development and leasing of industrial real estate. Harju Elekter Group’s plants in Estonia, Finland and Lithuania employ more than 500 specialists, and the annual sales revenue of the Group exceeds 60 million euros. Shares of Harju Elekter are listed on Nasdaq Tallinn.

The transaction does not constitute a transaction between related parties within the meaning of Nasdaq Tallinn’s Rules and Regulations.

Andres Allikmäe Chairman of the Management Board/CEO +372 6747 400

Prepared by: Moonika Vetevool Corporate communication and investor relations manager +372 671 2761