Subsidiary of Aktsiaselts Infortar signed an investment agreement and a shareholders' agreement for acquiring a 51% shareholding in OÜ Halinga

Yesterday, 27.02.2024 OÜ EG Biofond (registry code: 11504910), a 100% subsidiary of Aktsiaselts Infortar, and Brorup OÜ (registry code: 16921156) signed an investment agreement and a shareholders' agreement according to which OÜ EG Biofond acquires a 51% shareholding in OÜ Halinga (registry code: 10021090). 100% shareholder of Brorup OÜ is Raul Peetson.

According to the agreements, getting an approval from the Competition Authority and additional operations are preconditions for completion of the transaction. Amongst others the final price of the transaction depends on the transaction parameters that are still to be specified and will be clarified on the closing date.

Following the transaction, the shareholders of OÜ Halinga are OÜ EG Biofond to the extent of 51% and Brorup OÜ to the extent of 49%.

OÜ Halinga, is one of the largest milk production companies in Estonia and important employer in the region, employing more than 70 people. For Aktsiaselts Infortar the acquisition of a shareholding in OÜ Halinga marks an entry into a new field of business activity. Halinga dairy herd size reaches 3,000 cows and young animals. The area of cultivated land is 3,700 hectares. OÜ Halinga will continue its current activities as a member of Aktsiaselts Infortar group.

Managing Director of Aktsiaselts Infortar, Martti Talgre:

It is worthwhile to produce milk at the latitude of Estonia, and Estonian dairy farms are regionally competitive. OÜ Halinga, with its three farms and over 3,700 hectares of cultivated land, is one of the largest and most modern among them. Investments in agriculture align with Infortar’s portfolio – it is a capital-intensive sector with high entry barriers. We have an interest in investing, and we have plenty of plans, but we can comment more precisely on this transaction and our plans after obtaining approvals from the Competition Authority and the completion of the transaction.

The transaction is not treated as a transaction beyond everyday economic activities or a transaction of a significant importance, nor as a transaction with related persons, within the meaning of the "Requirements for Issuers" part of the NASDAQ Tallinn Stock Exchange rules. The transaction does not have a significant impact on Aktsiaselts Infortar's activities. The members of the Supervisory Board and the Management Board of Aktsiaselts Infortar are not personally interested in the transaction in any other way.