Results of the initial public offering of shares of Arco Vara AS
ARCO VARA AS
The initial public offering (the “Combined Offering”) of shares of Arco Vara AS (the “Company”) ended on 14 June 2007.
In conjunction with the public offering of shares of the Company (the “Shares”) in Estonia and Latvia (the“Retail Offering”) Shares were offered to institutional investors in and outside Estonia and Latvia and to certain employees of the Company and its subsidiaries and joint ventures (the “Group”) in Lithuania, Romania and Bulgaria (the “International Offering”). In addition, a private placement of Shares was made to certain key managers of the Group in connection with their incentive scheme (the“Management Incentive Offering”).
After the offer period the Company and its shareholders Osaühing Toletum and Osaühing HM Investeeringud (the “Selling Shareholders”) fixed the offer price at EEK 38. For investors in Latvia, theoffer price was established at LVL 1.6909, calculated on the basis of the official daily exchange rate published on the web page of Eesti Pank (the Central Bank of Estonia) on 14 June 2007.
The total demand in the International Offering and Retail Offering was 69,235,119 Shares, which is approximately 2.1 times higher than 32,900,000 Shares which is the base number of Shares in the International Offering and Retail Offering (i.e. the total number of Shares in the Combined Offering excluding the Management Incentive Offering and Shares allocated in the course of over-allotments). Thetotal demand in the International Offering was 67,131,069 Shares, while the total demand in the Retail Offering was 2,104,050 Shares.
A total of 39,850,000 Shares were allocated in the Combined Offering (including the Shares allocated in the Management Incentive Offering and over-allotments), of which 27,500,000 were new Shares issued by the Company, 6,950,000 were existing Shares sold by the Selling Shareholders and 5,400,000 were Shares allocated in the course of over-allotments.
37,296,752 Shares (approximately 93.6% of the Combined Offering) were allocated in the International Offering and 1,034,248 Shares (approximately 2.6% of the Combined Offering) were allocated in the Retail Offering, of which 148,601 Shares were allocated to the employees and managers of the Group who were entitled to preferred allocation in the Retail Offering (the“Preferred Managers and Employees”).
Of the Shares offered in the Management Incentive Offering, 1,519,000 shares (approximately 3.8% of the Combined Offering) were sold to the key managers of the Group and the remaining 31,000 shares were allocated to investors in the Retail Offering and International Offering.
After the Combined Offering, the share capital of the Company will be EEK 952,841,500. The Shares allocated in the Combined Offering represent approximately 41.82 per cent of the share capital of the Company after the Combined Offering, assuming that the Global Coordinator of the Combined Offering, Skandinaviska Enskilda Banken AB (publ), exercises its option to purchase from the Selling Shareholders 5,400,000 additional Shares to cover over-allotments (“Over-Allotment Option”). After the Combined Offering Osaühing Toletum will control approximately 38.79 per cent of the votes and Osaühing HM Investeeringud approximately 19.39 per cent of the votes that can be cast in the General Meeting of Shareholders of the Company, assuming that the Over-Allotment Option is exercised in full.
In whole, 1,834 retail investors participated in the Retail Offering. In the Retail Offering, the Shares were allocated as follows.
The purchase orders from one to 750 shares (included) were accepted in full. The part of the purchase orders, which exceeded 750 shares, was rejected.
The Preferred Managers and Employees were granted a preferential allocation. All their purchase orders were fully accepted.
The Shares allocated in the Retail Offering will be transferred to the securities accounts of the investors on or about 20 June 2007. An investor may obtain information about the number of Shares allocated to it/him/her after thesettlement has been completed by submitting an inquiry to the custodian operating its/his/her respective securities account in accordance with the terms and conditions applied by that custodian. The amount in excess of what the investor is required to pay for the Shares will be released to the investor by its/his/her custodian on or about 20 June 2007.
Trading in the Shares is expected to commence on the Tallinn Stock Exchange on or about 21 June 2007.
For additional information:
Investor Relations Manager, Arco Vara AS
tel:+372 6144 654